Sweden Slashes Income Taxes to Promote Job Growth

September 19, 2009
Posted by John at PowerLineBlog.com

We noted here that the United States has the most progressive income tax system in the developed world. That’s right–embarrassingly enough, more progressive than Sweden’s.

Actually, a generation of economic stagnation has taught the Swedes a lesson. They’ve learned that government does not produce wealth, and if they want more people to work, jobs have to pay better, after taxes. Sweden is therefore in the midst of a series of tax cuts aimed at preserving the long-term viability of its economy. Today’s headline: “Sweden slashes income tax further to boost jobs.”

It’s an interesting comparison: Sweden experimented with the nanny state, learned that it was devastating to the economic and moral health of its people, and is moving back toward individualism. Here in the U.S., we had the world’s most dynamic economy, and the lesson we took away from that–some of us, anyway–was that we were doing something wrong and needed to socialize everything. Curious.

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