I’m an American living in Sweden. Here’s why I came to embrace the higher taxes.By Tom Heberlein
Here are six reasons I have come to love Swedish taxes.
1) Swedish income taxes are not much higher than US taxes......US critics say that Swedes pay 56 percent — so the government takes over half of your money. This is not true — 56 percent is the marginal tax rate, i.e. what high earners pay on income over a certain amount in both state and local taxes. Only 15 percent of Swedes pay tax at this rate. It turns out the average Swede pays less than 27 percent of his or her income in direct taxes. As I've written elsewhere, my wife and I pay about 22 percent of our US income in taxes. Our Swedish income tax was 31 percent. So, yes, our income taxes in Sweden were higher than in the US, but ......you get far more for your taxes than you do in the US. In Sweden, college is free and students get a housing stipend.
2) Tax forms come already filled out
Our US federal and state forms tax forms were more than 30 pages long last year.........In Sweden, the four-page tax form comes in the mail already filled out. .....we "sign" with a text from our phones. In 15 minutes we are done.
3) There is no property tax
When the conservative government, favoring lower taxes, came to power in Sweden in 2006 one of its first steps was abolish the property tax and replace it with a fixed fee. The real estate fee for services is 7,112 SEK per house ($825 at current exchange rates).
This is the same for everyone no matter what the assessed value of the dwelling. The fee is $12 a month for our co-op apartment in Stockholm. If we owned the same property in Madison, our taxes would be $18,000 a year.
4) Sales taxes in Sweden are higher — but less noticeable
If something costs 100 kronor, you pay the 100 kronor! Only when you look at the receipt do you see that it costs 80 kronor and 20 kronor for VAT (value-added tax).
5) We get cash instead of deductions
If the Swedish government wants you to do something, they give you the money. For example: Having children is good for the society and costs parents money. In the US, you get a deduction on your income tax for dependents. In Sweden, you get a check every month and you can use it to buy shoes. For one child you get $120 a month and up to $620 for four children. Every parent gets a check.
6) High taxes give me more choices and freedoms
tax dollars (in Sweden)... are used to provide collective goods that are beyond the reach of any individual and that benefit everyone.
*college gives the best and the brightest the opportunity to attend any school they choose — equalizing opportunity on merit, not parents' wealth
*a hiking trail system In Stockholm .... I get to use it for free and have more choices for hiking
*national parks, accessible and free to everybody.
*public transportation system.
*health insurance high-quality care a short walk from my home, same-day appointments
I am not burdened by Swedish taxes. In fact, paying more allows me to increase my quality of life in a big way.
I’m an American living in Sweden. Here’s why I came to embrace the higher taxes. - Vox