September 01, 2006

It is still good old Swedish pragmatism!

Sir, as you so correctly state in “Sweden’s decision”, September 1, many countries around the world do indeed follow with much interest what those Swedes are up to and so it is very important to be very clear about what they really do. For instance when you mention to “combine a vigorous private sector with high taxes”, we know that many in the developing countries would read that as having high corporate taxes, though in fact in Sweden high taxes are applied primarily to the individuals, after fairly low taxes on the corporations have allowed the individuals to find well paying jobs. In this respect my reading on what changes are currently on the menu in Sweden, especially those related to payroll taxes, sounds very much like traditional standard fare of old Swedish pragmatism and that looks to make it easier to create those jobs they intend to keep on taxing, just the same.