Sunday

Sweden, inequality and the unreliable Gini.

Income tax for high incomes is high in Sweden, especially if combined with social security contributions made by the employer. However there is no inheritance tax, as far as I can see. Is it therefore possible that rich people arrange their affairs to minimise their taxable income but, at the same time, are not so concerned to minimise their assets? And could this be one reason why Sweden appears on the surface to be one of the more equal countries for income but one of the most unequal for wealth?

To put it another way, is the Gini coefficient very misleading because people arrange their finances according to tax rates?

  1. Is the Gini coefficient efficient?
  2. Sweden is not Marilyn Munroe
  3. BBC propaganda about inequality
  4. Don’t leave it to Gini
  5. Sweden – not so great and not so Socialist either it seems
This entry was posted in Inequality, Tax and growth. Bookmark the permalink.

One Response to Sweden, inequality and the unreliable Gini.

  1. Kj says:

    Probably. It’s neighbouring country, Norway, taxes both inheritance and net wealth, so a comparison between the two countries would give you an indication if your theory is true.

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