If it were merely a matter of 'a few points more' and you get 'this benefit' ... I think the argument would make sense.
But taxes in Sweden are something to almost choke on, they are extremely high. Not just high ... and I'm not quite sure that the benefits reflect quite how high taxes are.
The payroll taxes are enormous (almost as much as income tax) - and with elevated base + VAT it really makes a difference.
At 'higher income levels' - say at more than $150K USD equivalent, you're going to be paying over 60% in 'total taxes' - though much of that is 'hidden' in payroll taxes. And what you take home, you pay a further 25% on almost anything you consume.
So at upper income, but not necessarily 'rich' - you're approaching $30 in your pocket for every $100 earned, which is quite egregious.
Despite the obvious systematic benefits of many social programs, I don't think it's fair that we can assume some arbitrary levels of efficiency in that taxation. I really do feel the bulk of it boils down to redistribution for almost arbitrary public sector work.
I wish there was a happy place in between Texas and Stocholm on that, but I'm not sure what the answer is.
It’s not as bad as you make it sound; top marginal rate is 55% and you pay 30% tax on a decent/higher-end salary. Yes there are costs for the employer, but that’s the case in other places too.
A ~P75 software engineer can accumulate 1 MUSD within 15-16 years given 7% growth and decent city center living. <10 years for someone really good. Still, it’s not the US, but at least it’s possible.
If it were merely a matter of 'a few points more' and you get 'this benefit' ... I think the argument would make sense.
But taxes in Sweden are something to almost choke on, they are extremely high. Not just high ... and I'm not quite sure that the benefits reflect quite how high taxes are.
The payroll taxes are enormous (almost as much as income tax) - and with elevated base + VAT it really makes a difference.
At 'higher income levels' - say at more than $150K USD equivalent, you're going to be paying over 60% in 'total taxes' - though much of that is 'hidden' in payroll taxes. And what you take home, you pay a further 25% on almost anything you consume.
So at upper income, but not necessarily 'rich' - you're approaching $30 in your pocket for every $100 earned, which is quite egregious.
Despite the obvious systematic benefits of many social programs, I don't think it's fair that we can assume some arbitrary levels of efficiency in that taxation. I really do feel the bulk of it boils down to redistribution for almost arbitrary public sector work.
I wish there was a happy place in between Texas and Stocholm on that, but I'm not sure what the answer is.