Errata: Sweden’s Tax Rates

Sweden’s Tax rates

Corporate Tax Rate: 28%

VAT: 25%, general rate; 12% for food and hotels; 6% for culture.

Personal Income tax rates: 29-35%;  above 327,600 SEK (approx 50,ooo CDN) another  20 – 25% (max 60%).

Capital Gains: 30%



3 thoughts on “Errata: Sweden’s Tax Rates

  1. you should plot Sweden’s growth rate too, show the oh so strict correspondence between personal and corporate income tax rates and growth. And you need to write something about the state acting as the level of working class flexibility – both by lowering tax income rates, moving to consumption taxes, and simultaneously forcing the UAW and the CAW to re-open contracts just concluded.

  2. It is also interesting that for 2009 Canada’s prov and federal CIT is 30% (+2%) Sweden. And Capital gains are max 21.5% (top bracket divided by 2 because only 50% CGs are taxed) making Canada a lower CG jurisdiction than Sweden.

    So really what proponents of the Nordic model are asking for is higher PIT + higher VAT taxes in Canada. For some reason they always leave out the PIT part…I wonder why? Perhaps they are not really serious about developing a Nordic system here in Canada but think they have found a Trojan horse type argument for PIT tax cuts and VAT increases.

  3. Another thing worth mentioning: Sweden’s neighbors are Norway, Denmark and Finland – where VAT is about the same (22-25%). Canada’s neighbor is the US, where there’s no Federal sales tax and state taxes are in the range of 5%-8%. So raising HST (even in exchange for lower personal taxes) will result in more cross-border shopping. (NB was considering raising the HST to 15% in exchange for a 10% flat income tax – they had to back down on that and make it a 12% rate.)

    Plus – Sweden’s VAT is a hidden tax. (E.g. SEK 100 posted price includes SEK 80 purchase and SEK 20 tax.) Unless a similar system is adopted here, any hike in sales tax would be just too visible and too annoying.

    Finally – with the current spending level, we’ll need a 40-47% VAT to replace both Federal and Provincial personal income taxes.

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