Why is Sweden's Tax Rate High?
Abstract: Sweden's tax rate nears 50%, but the economy remains stable and the public happy. Rising social services demand rising cost, and the public is willing to pay more to receive more from the Swedish government. Costs also can be attributed to the increasing environmental awareness spreading across the world, and has taken Sweden by storm. One more major attribution could be to the structure of the government itself with its still active Monarchy.
Sweden's high taxation rate is a question that has a myriad of answers. What main factors correlate to Sweden maintaining a high rate of tax, all while still remaining a democratic state? The social policies the state enforces, and the social agenda drive of costs in the trade for more services. The remaining monarchy also continues to have a lot of power over the state and the decisions made. An ever growing demand for environmentally sustainable technologies earn state welfare in it's research that ultimately aids the community. Factors including social policies, a present and working monarchy, and increased development in environmental fields require resources from the public and drive up taxation rates.
A centralized governing body manages a great amount of the countries wealth, the influx of wealth as well as the outgoing. As opposed to American Democracy some decisions are made outside the voters, however, the ruling monarchy's power only extends so far due to the democratic parliament. Unions help organize workers and also keep a voice heard in parliament about maintaining decent wages, work environments and new developments. Union demands help shape decisions made by the governing body, and as such obtain resources to aid in maintaining social services (Edebalk, P., & Olsson, M. , 2010). Tax revenues are also part of the government's salary, and while increasing the amount of services is good, some people may argue the...