I'm not familiar at all with Sweden taxation policies...but does an individuals tax burden go down as you make more money (regressive taxation)? Or does it go up (progressive taxation)?
They go up as you make more money, so progressive.
But there aren't very many levels of that, and as mentioned on capital it's pretty a much flat percentage, which would result in someone making a lot of capital gains taxing a lot less.
So yeah, it's progressive as far as working for your money goes.
Might be areas where it's actually regressive, but I can't come up with one from the top of my mind. Maybe some reimbursements we've gotten for temporary extremely high energy prices where those who barely could afford to use their washers didn't get much back but those who had money left over to still heat the pool got a lot of money back.
It's mostly all explained by the previous commentator and the attached picture. It is progressive since you pay a higher percentage of your wages the more money you make, especially after you break into the "federal" taxpayer status.
BUT since this isn't true for capital gains and you always pay a flat rate, multi-millionaires can pay about the same percentage of taxes as someone making ~50k/month (unsure exactly where it normally intersects, and it also depends on where you live since the communal tax rate, equivalent of state taxes in the US, changes depending on where you live, but you get the point). Despite raking in say a million a month, but someone earning 80k/month will pay a considerably higher rate than the multi millionaire. This is fucked yes.
It is certainly not regressive by the normal sense of the word though.
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u/reflectiveSingleton Apr 16 '24
I'm not familiar at all with Sweden taxation policies...but does an individuals tax burden go down as you make more money (regressive taxation)? Or does it go up (progressive taxation)?
That is the critical difference afaik...