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Tax revenue resulting in a loss

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.

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ISBN: 978-91-7703-002-7