Sweden Warned Not to Return to High-Tax 70s
- NIER says there are big negative effects longer term
- Says Sweden can improve welfare through productivity gains
Pedestrians in central Stockholm.
Photographer: Johan Jeppsson/BloombergThis article is for subscribers only.
Don’t return Sweden to the high taxes of the 1970s and 1980s.
That warning comes from Sweden’s state-funded economic think tank as the Social Democratic-led government has been raising taxes on workers, while planning to cut levies on pensioners and those collecting benefits.