Maybe the next Bjorn Borg won’t feel compelled to move to Monaco now that Sweden plans to scrap a decades-old “wealth” tax that imposes levies on assets not just on income, says the Associated Press.
Not surprisingly, as a result of the tax, many of the wealthiest Swedes have already fled the country:
Worse, the tax was designed to keep the rich from getting richer but is increasingly seen as harming primarily the not-quite-rich upper-middle classes. As a result, it has been losing favour across the continent:
The move underscores Sweden’s efforts to keep successful citizens and their capital at home by changing its fabled but costly welfare state.
“It’s not sustainable to keep taxes that radically diverge from other countries,” Finance Minister Anders Borg, who is not related to the tennis great, told the Associated Press yesterday. “Not if you want the money to stay in the country.”
Source: Editorial, Swedes finally scrap the wealth tax, Edmonton Sun, March 30, 2007.
For text: http://www.edmontonsun.com/News/World/2007/03/30/3870247-sun.html
For more on International Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=26
FMF Policy Bulletin/ 11 April 2007
