Taxes and other forms of income redistribution take such a bite out of wages in Denmark, Norway and Sweden that an average worker gets to keep just 20pc of his earnings, compared with 63pc in the United States. Nevertheless, these Scandinavian economies are some of the world’s strongest, writes Henrik Jacobsen Kleven of the London School of Economics. That’s because Scandinavia’s laws ensure broad-based tax participation, and public spending is focused on subsidies for services.
(Source: Journal of Economic Perspectives)
Published in Dawn, Economic & Business, January 26th , 2015
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