Monday, December 28, 2015
Since January 1st, Sweden has the highest marginal taxes in the world. The marginal tax rate were increased by 3 percentage points for more than 400 000 persons, 8 per cent of the employed persons. This is done to finance government reforms. However, in a new study by Jacob Lundberg, postgraduate student in economics at Uppsala University, the tax hike will lower tax revenues with up to SEK 4 billion. Hence, it would seem that Sweden has passed the peak of the Laffer curve.