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Man Bites Dog, Swedes Cut Taxes

1 min readBy: Scott Hodge

Here is a headline you won’t see in the U.S. — “Sweden Announces Income TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Cuts to Boost Jobs”

Yet, that was the headline in today’s Industry Week.

The story speaks for itself, but the question is if the Swedes now recognize that taxes matter to a country’s business climate and incentives to work, then when will America’s political class?

Here are some excerpts:

“Sweden announced income tax cuts of 15 billion kronor (US$2.21 billion) in a bid to stimulate the job market, one of its primary objectives.

The proposal, to be presented to parliament on Sept. 22 as part of the 2009 budget bill, is the third leg of a tax cut program introduced in January 2007 to stimulate employment…

Last week the government announced a separate 16 billion kronor (US$2.4 billion) package aimed at improving the business climate, which would in turn help increase employment. That package included proposals to cut the corporate tax rate from 28% to 26.3% in 2009 and a reduction of social contribution fees paid by employers by around one percentage point.

Since coming to power in the autumn of 2006, the Swedish government has launched a series of measures aimed at inciting Swedes to return to the job market instead of living off of state subsidies.”