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Do you think the high taxes in Sweden are

Are high taxes worth it?

Thekinginthenorth
post 18.Jun.2020, 09:33 PM
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Joined: 19.Dec.2019

conpensated for by things like good quality and almost free childcare and free education (especially for things like university), plus the quality of healthcare and lifestyle in comparison to other countries or do you think those things are overrated compared to the relatively high taxes paid?

Do you think the reality of Sweden lives up to it's reputation abroad as a utopia where so many things are free and of excellent quality?
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skogsbo
post 18.Jun.2020, 10:09 PM
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Joined: 20.Sep.2011

Nothing life is free, you pay for it one way or another. Taxes; I'd say they are not much higher than elsewhere, just more up front, ie income taxed at source.
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Essingen55
post 19.Jun.2020, 10:21 AM
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Joined: 12.Dec.2013

When I learn that Eriksdalbadet needs SEK 1 billion for repairs 20 years after it was built, I start to have my doubts.
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kilgore
post 19.Jun.2020, 10:51 AM
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Joined: 23.Nov.2019

QUOTE (Thekinginthenorth @ 18.Jun.2020, 10:33 PM) *
conpensated for by things like good quality and almost free childcare and free education (especially for things like university), plus the quality of healthcare and lifestyle ... (show full quote)


Taxes in Sweden are about as high as in other Western European countries.

https://tradingeconomics.com/country-list/p...ontinent=europe

There has been however a noticeable drop in the quality of many services after several waves of tax cuts and privatizations starting in the late 90s. This is not to say you would get a better deal for those services in the private sector.

Part of what makes taxation an efficient mechanism for providing services is the fact that the government institutions can negotiate prices in block and as the only buyer. You, as an individual, have no time or energy to find an exhaustive list of suppliers, figure out what their production costs are and negotiate terms and conditions with them. You also have no idea on how to properly price risk unless you have two master degrees in economics and statistical analysis.
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TheExpatEagle
post 19.Jun.2020, 06:34 PM
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Joined: 23.Aug.2016

Income tax in Sweden is lower than that in the UK. People always raise an eye brow when I say that but it is true. The problem is every country incorporates different things into what they call income tax.

For example, the UK has income tax, National Insurance and council tax as separate taxes but all 3 are part of the income tax in Sweden.

This is why there is so much discussion about tax and services for each country. When Tony Blair said "if you want Scandinavian free education then you have to pay Scandinavian level taxes" it made me laugh because the UK not only pays more in income tax but the amount of so-called stealth taxes that exist mean the UK is taxed beyond belief.

That said, VAT is 25% here but only 20% in the UK: I have always thought VAT was a better tax to raise over income tax.

Monaco, and other countries, have 0% (zero) income tax and 25% VAT.
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bonviveur
post 19.Jun.2020, 07:35 PM
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Location: Värmland
Joined: 12.Oct.2015

QUOTE (TheExpatEagle @ 19.Jun.2020, 07:34 PM) *
Income tax in Sweden is lower than that in the UK. People always raise an eye brow when I say that but it is true. The problem is every country incorporates different things i ... (show full quote)

you did not mention tax free earnings per year difference. UK more than 146000 sek , sweden 13700 sek
I say people in uk pay a lot less income tax than in sweden
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skogsbo
post 19.Jun.2020, 08:06 PM
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Joined: 20.Sep.2011

QUOTE (bonviveur @ 19.Jun.2020, 07:35 PM) *
you did not mention tax free earnings per year difference. UK more than 146000 sek , sweden 13700 sek. I say people in uk pay a lot less income tax than in sweden

The tax brackets also increase faster in sweden.
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Mib
post 19.Jun.2020, 08:08 PM
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Joined: 7.Jul.2006

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nativeswedishengineer
post 19.Jun.2020, 08:41 PM
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Joined: 7.Nov.2017

QUOTE (TheExpatEagle @ 19.Jun.2020, 07:34 PM) *
Income tax in Sweden is lower than that in the UK. People always raise an eye brow when I say that but it is true. The problem is every country incorporates different things i ... (show full quote)


Wasn't UNI free under Blair? I though it was lib-con that introduced tuition.
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skogsbo
post 20.Jun.2020, 05:48 AM
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Joined: 20.Sep.2011

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TheExpatEagle
post 20.Jun.2020, 07:01 PM
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Joined: 23.Aug.2016

QUOTE (nativeswedishengineer @ 19.Jun.2020, 09:41 PM) *
Wasn't UNI free under Blair? I though it was lib-con that introduced tuition.


Like with a number of things it was something Labour introduced and the Tories got blamed for.

Speaking as a lifelong Labour voter.
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TheExpatEagle
post 20.Jun.2020, 07:07 PM
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Joined: 23.Aug.2016

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john.boy
post 21.Jun.2020, 07:51 AM
Post #13
Location: Stockholm county
Joined: 27.Sep.2017

QUOTE (TheExpatEagle @ 19.Jun.2020, 07:34 PM) *
Income tax in Sweden is lower than that in the UK. People always raise an eye brow when I say that but it is true. The problem is every country incorporates different things i ... (show full quote)

Sweden has a higher income tax rate than UK, it is currently #2 within the EU.
You need to take into consideration where the burden lies, in UK income tax on an employee includes National Insurance, in Sweden it does not. In Sweden it is the employers who pay the full total of what the UK term National Insurance.

To level the playing field, in UK employers pay between 2% - 12% National Insurance on the employees salary, where-as in Sweden it is 31.42%. If Swedish employers were to pay the same Social Charges as UK and burden shifted to employee, then Swedish Income Tax can be considered to be around 55% and the only country that is higher than that within the EU is, if I remember correctly, Greece.

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skogsbo
post 21.Jun.2020, 08:13 AM
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Joined: 20.Sep.2011

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TheExpatEagle
post 21.Jun.2020, 06:56 PM
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Joined: 23.Aug.2016

QUOTE (john.boy @ 21.Jun.2020, 08:51 AM) *
Sweden has a higher income tax rate than UK, it is currently #2 within the EU.You need to take into consideration where the burden lies, in UK income tax on an employee includ ... (show full quote)


Kommunalskatt is NI and council tax. You can't just take what a country claims to be income tax and say that is income tax.
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