Scandinavia’s Extreme Taxes Help, Rather than Hurt, Its Economy !

January 6, 2015
Research Fact 
Scandinavia’s Extreme Taxes Help, Rather than Hurt, Its Economy ! 

Finding 
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 20% of his or her earnings, compared with 63% in the United States. 

Nevertheless, these Scandinavian economies are some of the world’s strongest . 

Reason 
That’s because Scandinavia’s laws ensure broad-based tax participation, and public spending is focused on subsidies for services such as child care that promote labor-force participation, Kleven says.

Courtesy : Research by Henrik Jacobsen Kleven of the London School of Economics.