“Sweden has substantial billionaire and millionaire tax base”

Discussion

Posted: 2021-06-22 11:00

Discussion – Peter Sundgren, Witz, a tax lawyer and editor of the Web Journal on International Taxation in Sweden

I DN Ten28 May Announced by Finance Minister Magdalena Anderson Wealth tax for millionaires, a millionaire tax.

Inside Within a few days, the project drew criticism from business representatives, economists and others.
The John-Olof Jack Federation of Swedish Enterprises warns that capital will disappear from the country, investment will fall and unemployment will rise. Millionaires will go abroad.

Professor of Economics John Hasler He hopes the tax will not bring any significant revenue to the treasury.
Sweden’s Democratic Economic Spokesman Oscar Zhostet raises rhetoric in bad proportions, believing that the finance minister’s proposal is “disgusting” and that he “cares” about it.

Generally speaking this can be said It led to its abolition in 2007, and without further reflection on what happened after that, all the arguments put forward against our previous wealth tax were mainly critical of this proposal. An epidemic that caused a global financial crisis and worsening epidemics. Business as usual.

Neither Critics responded to the widespread debate abroad about the wealth tax. Therefore, the discussion article of our Finance Minister in DN should not be considered as an exception. Check out Google’s “Wealth Line” and results!

Particularly noteworthy The International Monetary Fund, the International Monetary Fund, is now proposing to drive these issues “Temporary increase in taxes on wealth or higher incomes to help overcome the widening imbalances caused by the crisis”.

And wealth tax One that will be discussed in both the United States, the United Kingdom and Germany.
Moreover, it seems that Jack Ed Consorts has also neglected to take into account the latest foreign research related to wealth tax.

In a statement This has been emphasized since December last year at King’s College London “Reducing taxes on the wealthy in Western communities has not had a significant impact on economic growth and unemployment, but has helped to accumulate a greater share of national income among the very rich.”. The report is based on a study of the effects of capital tax cuts in several OECD countries, including Sweden, since the mid – 1990s.

Regarding Stanford University’s research report 2014, asks the argument that millionaires go abroad with their choice and package, “Do millionaires settle when tax rates rise?” The response they gave was negative. The reason for this is that millionaires are firmly rooted in their immediate environment because of their socio-economic, cultural and social contexts and their economic networks.

The following Two tax models have been launched in the wake of the epidemic and the growing inequality in the foreign debate.

A one-time tax on wealth

Recently The study, published by the London School of Economics, proposes to introduce a tax on wealth that could bring in huge government revenue, “a wealth tax for the UK”. With more than half a million GB and a tax rate of 1% over five years, the tax would add an additional 260 billion GB to the English treasury, which is similar to the total debt incurred by the UK during the epidemics. Such a tax would only affect 8246 people in the UK.

Line proposed All persons residing in the United Kingdom at a particular time and anyone who has gone abroad will be taken out if they have previously resided in the United Kingdom for a specified period. In this way, tax liability cannot be avoided by going abroad or by other means. Nor does it affect savings or investments.

Finally, let’s mention that Argentina recently introduced a one-time tax for an estimated 12,000 millionaires.

Wealth tax “by consent”.

Another idea Ibrahim Khan discusses a wealth tax in the fall 2020 issue of Foreign Policy “Wealth taxes will not destabilize or end capitalism, as champion and critics allege.”

The basic idea of ​​the author Those affected by the tax can, above all, be forced to ‘accept’ it without appearing to be a left-wing attack on capitalism.

This is how to write Con: “In order to be approved, a new wealth tax must be designed so that it protects capitalism in its most stable and competent forms and encourages the creation of wealth. Thus tax and other liquid assets will be taxed only. This means you can avoid taxes by diverting your capital through consumption or investment instead of pouring it into your bank account.

Khan continues: This increased economic activity will generate more income for productive and valuable activities, which in turn will create tax receipts and jobs – further helping to alleviate poverty. ”

According to the Financial Times Under the heading on May 14th “Billionaire boom: How the super rich soaked Govt money” The number of millionaires in Sweden has risen from 26 to 41 in the last five years (10 of them last year). Their total private wealth, of which more than 60 percent is hereditary wealth, now accounts for almost 30 percent of Sweden’s GDP! Last year there were 142,000 millionaires in our country. Thus Sweden has a substantial billionaire and millionaire tax base.