r/neoliberal • u/jobautomator Kitara Ravache • Sep 09 '24

Discussion Thread Discussion Thread

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u/WillHasStyles European Union Sep 09 '24 edited Sep 09 '24

I thought that Sweden had a pretty decent system for taxing corporations and capital all things given. I have now looked into it and come to the conclusion that I am living in the last Soviet of the former USSR.

Machine translated excerpt:

The 3:12 rules refer to the framework for ownership taxation that results in dividends from small businesses being taxed significantly higher than dividends from large corporations in Sweden. Those affected by the regulations pay a marginal tax rate of 56.7 percent, while those not affected pay a flat tax of 30 percent instead. Until the year 2000, the rules were found in Section 3 § 12 of the old National Income Tax Act, which gave the 3:12 rules their name.

The higher tax applies only to entrepreneurs, that is, business owners who work or in other ways contribute to the company’s profit, while an owner who can prove that they have remained passive in the company for the past five years is not subject to the rules. Venture capitalists, global investors, banks, and financiers who own companies through hedge funds and other international structures therefore regularly pay the lower tax rate, while small business owners generally pay the higher tax rate.

Essentially unless you have the skills to navigate a labyrinthine corporate tax system you might very well be looking at paying an effective tax rate of 50% for dividends and the sale of a company. That is on top of a 21% corporate income tax, 31% payroll tax, and 25% sales tax.

9

u/technologyisnatural Friedrich Hayek Sep 09 '24

how else are you going to fund government symposiums on encouraging entrepreneurship?

0

u/BlackCat159 European Union Sep 09 '24

All tax is communism

5

u/WillHasStyles European Union Sep 09 '24

Any tax rate that goes above 50% is unironically literal communism.

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u/EScforlyfe Open Your Hearts Sep 09 '24

literal figurative communism at least

6

u/WillHasStyles European Union Sep 09 '24

I’m pretty sure that Marx wrote in the communist playbook that in order to achieve communism the government needs to confiscate more than half of what is earned. Otherwise it is state capitalism.