Tax Rates and GDP Growth
Matthew Yglesias has sparked off a fiery debate about the Swedish economy by proposing that high taxes – especially on the wealthy – has led to a GDP growth below the Nordic average.
Difficult subject to discuss, but one question could be: Did taxes and economic growth play a role in the defeat of the Social Democratic government even if general tax policy wasn’t an important issue in the electoral campaign?
Meanwhile the government pulls money out of investments and into housing – or to be more precise – existing home-owners – by abolishing property and fortune taxes.
