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Gerry Clinchy
10-01-2012, 01:03 PM
http://www.americanthinker.com/2012/10/the_swedish_model_government_austerity.html

I thought this was a good fact-based article describing how heavy govt spending does NOT grow an economy.

When govt spending in Sweden hit 68% of GDP, it's economy went to 0% growth (for 5 years). It was also running govt deficits. At that point the govt acknowledged the problem & began "austerity" measures, among them reducing subsidies for health and dental care (how about that?). They also had very high taxes. It took them 12 years to get back down to their present rate of spending, 37% of GDP. The economy began to grow again when they got down to 49% of GDP. Taxes are now lower than they were during the low-growth period, growth is up, and they are running budget surpluses! Their tax rates are pretty much a flat rate across all income levels.

The conclusion here was:


Keynesians tell us that cutting government spending will slow economic growth. The exact opposite happened with Sweden. Once it started cutting spending, its economy started growing: 4% in 1994 and 3.9% in 1995. In the 18 years since it started cutting, Sweden's economy grew at twice its previous rate, even faster than the U.S.'s.



The sources for the information in the article:



Data sources: The source for most comparisons above, including the two charts, was the International Monetary Fund's World Economic Outlook Database (http://www.imf.org/external/pubs/ft/weo/2012/01/weodata/index.aspx) (dated April 2012). The source for population characteristics was the CIA Factbook (https://www.cia.gov/library/publications/the-world-factbook/geos/sw.html). The source for U.S. federal government revenue and spending was the White House's Office of Management and Budget (http://www.whitehouse.gov/omb/budget/Historicals/).

BonMallari
10-01-2012, 01:05 PM
and why did multi million dollar athletes like Bjorn Borg and Annika Sorenstam leave Sweden.....because they didnt want to have to share the wealth they amassed for their athletic achievements

LokiMeister
10-01-2012, 03:22 PM
What is the income tax rate then?

zeus3925
10-02-2012, 05:03 AM
This should help you pick your paradise:

http://www.taxpolicycenter.org/briefing-book/background/numbers/international.cfm

Buzz
10-02-2012, 07:59 AM
This should help you pick your paradise:

http://www.taxpolicycenter.org/briefing-book/background/numbers/international.cfm



This clearly shows why the tea partiers are so upset about their taxes...

LokiMeister
10-02-2012, 08:30 AM
This should help you pick your paradise:

http://www.taxpolicycenter.org/briefing-book/background/numbers/international.cfm

Isn't that a little misleading? Isn't the GDP of the US much, much higher than the other countries making the tax percentage lower? I don't think it is a fair comparison.

Buzz
10-02-2012, 08:47 AM
Isn't that a little misleading? Isn't the GDP of the US much, much higher than the other countries making the tax percentage lower? I don't think it is a fair comparison.


You want to make adjustments? Knock yourself out.


http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

LokiMeister
10-02-2012, 09:11 AM
You want to make adjustments? Knock yourself out.


http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

You must be a politician...

caryalsobrook
10-02-2012, 01:56 PM
This clearly shows why the tea partiers are so upset about their taxes...

So yo think lower taxes is a yardstick of failure and higher taxes proves success??? that should be so simple to answer.:razz:

Gerry Clinchy
10-02-2012, 05:19 PM
I think the article said that the total tax rate in Sweden is around 50%. If you look at the US, it gets pretty complicated.

Where I live: lets start with FIT at 15%. Then add 3% for state tax (other states are more) and 1% for local tax. That's 18%. Some large cities may have a higher "local" income tax. SS/Medicare since it's mandated, could be counted as an additional 7%. Property taxes are on top of that. There is a state sales tax of 6%. Food is not taxed in the grocery store ... unless you purchase prepared foods, like a hoagie at the deli counter. Clothing not taxed, but laundry detergent is. Basic soap is not taxed, but things like body wash (luxury?) are. It gets complicated! Then, of course, we have those other taxes like the taxes on gasoline and our phone bills and electric bills. Not really sure how the all these additional taxes were computed for purposes of the article.