why Sweden is a poor country to be rich in

The high taxes, both on private income and on businesses, have been a thorn in the side of Sweden’s wealthy for ages. Recent surveys of all European country’s taxes just confirmed what many already knew—the average tax value of the 25 members in the European Union is
40.6% of GDP, with Sweden in first place with a tax rating of 50.8%. The closest competitors for the throne are Denmark with 48.8% and Belgium with
45.7%.

Sweden also has the highest taxation of labour, according to the definitions of Eurotstat, the organisation that completed the most recent study. Sweden clocks in at 46.1%, compared to the European average of 35.9%.

Sweden’s high taxes have been much in debate over the past decade. Businesses have in many instances chosen to move production and headquarters to other, more beneficial countries such as Germany, or as far off as Taiwan.

But it’s not only businesses that take the high road. Highly educated individuals often choose to relocate to the US or any of Europe’s less tax-intense countries. Take advantage of the welfare and then run to where you can put it to best use seems to be the philosophy for some.

The motivation for the high taxes is to fund the welfare system in the country, say the politicians. Sweden has excellent public schools, hospitals and general care, but this still doesn’t compensate many people for their harsh taxation. You can be sure that Swedish taxes will be a hot topic, for rich and poor, for a long time to come.