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Sweden cut the wealth tax, and got a very high startup to capital ratio; but a rapidly rising wealth gap as a consequence. That wealth came from the local econ
by aDyslecticCrow 11mo ago
Sweden cut the wealth tax, and got a very high startup to capital ratio; but a rapidly rising wealth gap as a consequence.
That wealth came from the local economy so it's reasonable to think it should return. But in practice there does not seem to exist any good approaches to do so.
- ceejayoz 11mo agoSweden is also a bit of an exception. https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve > A 2011 study by Trabandt and Uhlig published in the Journal of Monetary Economics estimated a 70% revenue maximizing rate, and estimated that the US and most European economies were on the left of the Laffer curve (in other words, that raising taxes would raise further revenue). A 2005 study concluded that with the exception of Sweden, no major OECD country could increase revenue by reducing the marginal tax rate.