Does it pay to work? Swedes wonder as top tax league looms

jueves 15 de octubre de 2015 08:55 GYT
 

* Top marginal tax to hit 60 pct next year, highest in world

* Broad tax rises an about-turn after market-oriented policy

* Critics say will reduce incentive to work, hit competitiveness

* Centre-left to boost spending on welfare, educuation, jobs

By Johan Sennero and Simon Johnson

STOCKHOLM, Oct 15 (Reuters) - Wealthy Swedes face the world's highest marginal tax rates as the government begins to roll back a decade of free market reforms that made the country a favourite of investors.

Critics say the measures will make Sweden a less attractive place to do business and act as a disincentive to work.

Sweden's comprehensive but costly welfare model demands high taxes, but reforms by centre-right governments from 2006 aimed at making work pay better and trimming benefits cut the tax burden to below that in France, Finland or Belgium.

Now the pendulum has swung again. The first full budget under a year-old centre-left minority government -- effective from January -- will see Sweden overtake the Caribbean island of Aruba as the country with the world's highest marginal tax rate, of around 60 percent.   Continuación...