Wednesday, August 5, 2015


Or perhaps it's Scandelusion. Nima Sanandaji explains how easy it has been to deceive the Norsemen;
In a survey conducted in 2003, the Swedish public was asked to estimate the total amount of taxes they paid. The respondents were reminded to include all forms of direct and indirect taxation. Almost half of the respondents believed that the total taxes amounted to around 30-35 per cent of their income. At the time of the survey, the total tax rate levied on an average income earner, including consumption taxes, was around 60 per cent....
Later studies show much the same under estimation of Nordic tax burdens by the bearers of those burdens.
...the design of Nordic tax systems has over time created a 'fiscal illusion', whereby the public is not aware of the taxes they are paying. One can reflect on whether it is really in line with democratic principles to raise taxes in a way such that citizens are unaware of them. Interestingly, few proponents of introducing a Nordic model of high taxes in other countries stress that such a move would require hiding the true cost of taxation from the public.
Chefs always want to keep their sauces secret. Especially Swedish chefs. But, this is a dish best served cold and hard. Because the evidence of sluggish growth in the Nordic rim is that the people are being harmed. I.e., their standards of living are lower than they need be.

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