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Letting the masses pay for the welfare state: tax regressivity in postwar Sweden

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  • Gunnar Lantz

Abstract

The mixed economy of the twentieth century shows conflicting developments in tax collection. Progressive taxes to limit top incomes are not the whole story. An examination of Sweden 1958–2012 shows that the progressivity of direct taxes was offset by consumption taxes and social security contributions. Previous studies conclude that tax progressivity peaked in the 1980s. This study shows instead how Swedish taxation became regressive in that period. The literature on welfare regimes and redistributive universalism relies empirically on conditions in the 1980s. Sweden did exhibit universalism in social spending but also a corresponding universalism in revenue collection.

Suggested Citation

  • Gunnar Lantz, 2021. "Letting the masses pay for the welfare state: tax regressivity in postwar Sweden," European Review of Economic History, European Historical Economics Society, vol. 25(1), pages 160-179.
  • Handle: RePEc:oup:ereveh:v:25:y:2021:i:1:p:160-179.
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    File URL: http://hdl.handle.net/10.1093/ereh/heaa007
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    Cited by:

    1. Torregrosa Hetland, Sara & Sabaté, Oriol, 2021. "Income Taxes and Redistribution in the Early Twentieth Century," Lund Papers in Economic History 224, Lund University, Department of Economic History, revised 05 Sep 2022.
    2. Sara Torregrosa-Hetland & Oriol Sabaté, 2022. "Income tax progressivity and inflation during the world wars [War finance and inflation in Britain and Germany, 1914–1918]," European Review of Economic History, European Historical Economics Society, vol. 26(3), pages 311-339.

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