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> European countries don’t build their welfare states by heavily taxing the rich Idk according to my swedish coworker, there was a marginal tax rate of 70-80%+
by dmoy 9y ago
> European countries don’t build their welfare states by heavily taxing the rich
Idk according to my swedish coworker, there was a marginal tax rate of 70-80%++ from like 1940-1985 or something.
- ztjio 9y agoIn the US it went up to 90% in the early part of that timeframe.
- AnthonyMouse 9y agoIt's important to realize that nobody really paid those rates in the US. At the time the rules for what could be claimed as a deduction were so lax that people were making $80,000 or more in deductions against $100,000 in income.
- retox 9y agoI've heard this argument a lot, does anyone have any good sources to confirm it?
- rayiner 9y agoSweden taxes everyone heavily: https://taxfoundation.org/how-scandinavian-countries-pay-their-government-spending https://taxfoundation.org/how-scandinavian-countries-pay-the.... The top marginal rate kicks in at 1.5 times the average income. Sweden also relies heavily on the 25% VAT, which is disproportionately borne by the lower brackets. Here is a hypothetical calculation of someone making $120k USD who is married with two kids: https://home.kpmg.com/xx/en/home/insights/2011/12/sweden-income-tax.html https://home.kpmg.com/xx/en/home/insights/2011/12/sweden-inc.... Such a person pays roughly 50% in total taxes. In the US it would be roughly 25% (in Maryland).