Sweden’s exorbitant tax rates and extensive welfare system are well know throughout the world, says Maria Rankka, the president of the Swedish free-market think tank Timbro. Even low-and-middle-income earners in Sweden pay 60 to 70 per cent in taxes.
Indeed, the culture of opportunity, which rose out of lowered taxes, deregulation and the country’s move away from socialism in the 1980s has given way to a debilitating “culture of entitlement.” Yet, there is a compelling way to reform Sweden’s welfare system: People should have the option to opt out of the government-run welfare state, says Rankka.
For example:
Free-market principles have already been used to reform Sweden’s school system, says Rankka:
Source: Peter Saunders, The Swedish Paradox, Policy, Winter 2008.
For text: http://atlasnetwork.org/the-swedish-paradox/#more-266
For more on Welfare Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=44
FMF Policy Bulletin/ 22 July 2008
