IREF - Institute for Research in Economic and Fiscal issues
Fiscal competition and economic freedom
Svensk Tidskrift, a Swedish review on politics, economics and culture founded in 1911, examines the IREF Yearbook (14 December 2012). The author, Anders Ydstedt, is a regular contributor to the yearbook on Swedish tax policies. He stresses that since 2000 tax revenues have increased by SEK 400 billion, whereas the tax pressure has been reduced by more than 5 points, from over 50 to below 45 per cent. The Swedish example shows that the Laffer effect is once more working: tax cuts also yield growing tax revenues.
Quoting a Danish colleague on these dynamic effects, he writes: "They have already overtaken us once more in terms of prosperity, and the OECD growth forecasts until 2030 show that Sweden will enjoy much higher growth than Denmark. They also benefit from more wealth, which should not be surprising in view of the much lower tax pressure." (Jyllandsposten, 15 October 2012).