• Nick Sorrentino

Even Sweden abandoned its wealth tax

Sweden is an interesting country and one we generally are a fan of. We have a special place in our hearts for Saabs and Abba. But what many people don't know, particularly newly minted "socialists" in this country, is that Sweden has been reforming toward more market based economic solutions for quite a long time.

(From Sovereign Man)
Even the most oppressive tax regimes in Europe (like Sweden and Denmark, where the top tax bracket is 63% and capital gains are taxed at 43%) have abandoned the wealth tax.
That’s right, even the most ardent, socialist countries realized that a wealth tax doesn’t work. As a matter of fact, nine countries in Europe abandoned the tax.
Why? Because people were leaving in droves to avoid paying the oppressive levy.
In France, 513 wealthy households left the country every year for 35 years because they were tired of paying a wealth tax – taking an estimated $175 billion of assets with them.
But when the wealth leave, they take more than their money… they also stop investing and creating jobs.

Actually Sovereign Man is a bit incorrect. Sweden isn't really socialist. At absolute best it can be called quasi-socialist. Nor can any other country in Scandinavia properly be called "socialist". They are welfare-statist, which is different from socialism, which is the government control over the means of production - mines, factories, etc.

In fact, in terms of bailouts and some other types of government meddling in the economy the USA has been worse than Sweden over the last 30 years.