2010-

Swedish Taxation: Developments since 1862

Author(s): Magnus Henrekson and Mikael StenkulaCo authors: Gunnar Du Rietz, Dan Johansson and Daniel Waldenström
Year: 2015Pages: 356Publisher: Palgrave MacmillanCity: New York
ISBN: 9781137478146

The contributions in Swedish Taxation examine the development of taxation in Sweden since 1862. Six key aspects of the tax system are covered: the taxation of labor income, capital income, consumption, inheritance and gift, wealth and real estate.

The book includes both a general description of the evolution of the specific taxes and an illustration of how these taxes could affect firms, investments or individuals. The presentation also includes extensive appendices, embracing all relevant tax schedules for the examined period. These data are unique in their consistency, thoroughness, breadth and timespan covered.

The working paper versions of the contributions can be found using the links below:


Link to subsequent studies on Swedish taxation

 

Data behind all figures in the book can be downloaded below:

Chapter 1 (Swedish Taxation since 1862: An Introduction and Overview)
1.1 Government expenditure as a share of GDP, 1862–2013 (%)
1.2 The tax-to-GDP ratio, 1862–2013 (%)
1.3 The composition of total tax revenues, 1862–2013 (%)
1.4 The marginal tax rates, 1862–2013 (%)
1.5 The marginal employer-paid SSCs, 1955–2013 (%)
1.6 The marginal tax wedges, 1862–2013 (%)
1.7 The marginal effective tax rate on capital income (METR) for an investment financed with new share issues, retained earnings, and debt, 1862–2013 (%)
1.8 Composition of consumption tax revenue as a percentage of total tax revenue, 1862–2013 (%)
1.9 Direct and total inheritance tax: large firm, 1885–2005 (% of firm equity)
1.10 Direct wealth tax rate for an owner of a large firm, 1911–2006 (% of firm equity)

Chapter 2 (Labor Income Taxation)
2.1 Summary of taxes affecting the marginal tax wedge on labor income, 1862–2013 (no figures)
2.2 State marginal income tax rates, 1862–2013 (%)
2.3 Local marginal income tax rates, 1862–2013 (%)
2.4 Marginal employee-paid SSCs, 1913–2013 (%)
2.5 Marginal tax rates, 1862–2013 (%)
2.6 Marginal employer-paid SSCs, 1955–2013 (%)
2.7 Marginal tax wedges on labor income, 1862–2013 (%)
2.8a The top marginal tax wedge and the relative top tax income threshold, 1903–2013
2.8b The top marginal tax wedge and the relative top tax income threshold, 1939–2013
2.8c The top marginal tax wedge and the relative top tax income threshold, 1970–2013
2.9 Marginal tax wedges on labor income, including consumption taxes, 1862–2013 (%)
2.10 Marginal tax wedge, given different assumptions, for the average-income earner, 1862–2013 (%)
2.11 Marginal tax wedge for married and unmarried average-income earners, 1862–2013 (%)
2.12 Marginal tax wedge for married with working spouse and unmarried average-income earners, 1862–2013 (%)
2.13 Marginal tax wedge, second income earner married to top income earner, 1862–2013 (%)

Chapter 3 (Capital Income Taxation)
3.1 The highest and lowest statutory marginal corporate tax rate and the statutory marginal corporate tax rate used in our calculations of the METR, 1862–2013 (%)
3.2 The marginal tax rate on interest income, 1862–2013 (%)
3.3 The marginal tax rate on dividends, 1862–2013 (%)
3.4 The marginal tax rate on long-term capital gains, 1960–2013 (%)
3.5 Highest and lowest marginal wealth tax rate and the marginal wealth tax rate used in our calculations, 1930–2013 (%)
3.6 The inflation rate, 1862–2013 (%)
3.7 The METR for an investment financed by new share issues, retained earnings, and debt for an average production worker, 1862–2013 (%)
3.8 The METR for an investment financed by new share issues, retained earnings, and debt for an individual facing the top marginal income tax rate, 1862–2013 (%)
3.9 The METR for an investment financed by new share issues, retained earnings, and debt for an individual earning 0.67 APW, 1862–2013 (%)
3.10 The present discounted value of tax savings from depreciation allowances and other grants (A) given an initial cost of one unit
3.11 The METR for an investment financed by new share issues, retained earnings, and debt for an average production worker, including effects from the IF system, 1862–2013 (%)
3.12 The METR, corporate taxes only (corporate METR) (%)

Chapter 4 (Taxation of Goods and Services)
4.1 Consumption tax revenue as a percentage of state tax revenue and total tax revenue, 1862–2013
4.2 Consumption tax revenue as a percentage of GDP, 1862–2013
4.3 Composition of consumption tax revenue as a percentage of state tax revenue, 1862–2013
4.4 Composition of consumption tax revenue as a percentage of total tax revenue, 1862–2013
4.5 Customs duties as a percentage of GDP, 1862–2013
4.6 Specific consumption taxes as a percentage of state tax revenue, 1862–2013
4.7 Specific consumption taxes as a percentage of GDP, 1862–2013
4.8 General consumption taxes as a percentage of GDP, 1935–2013

Chapter 5 (Inheritance and Gift Taxation)
5.1 Inheritance, estate, and gift tax revenue in Sweden, 1884–2005 (% of GDP)
5.2 Inheritance, and gift tax revenue as a share of total taxes and gift taxes as a share of inheritance and gift taxes, 1884–2005 (%)
5.3 Direct and total inheritance tax: large firm, percent of equity
5.4 Direct and total inheritance tax: medium-sized firm, percent of equity
5.5 Direct and total inheritance tax: small firm, percent of equity
5.6 Direct and total inheritance tax as a percentage of pretax inheritance: non-corporate assets equivalent to the large firm
5.7 Direct and total inheritance tax as a percentage of pretax inheritance: non-corporate assets equivalent to the medium-sized firm
5.8 Direct and total inheritance tax as a percentage of pretax inheritance: non-corporate assets equivalent to the small firm
5.9 Direct inheritance tax as a percentage of total wealth for a person of average wealth
5.10 Taxable limits (1894–1970) and basic exemptions (1971–2004) for descendants expressed as a share of the average annual wage of a production worker

Chapter 6 (Wealth Taxation)
6.1 Wealth tax revenue as a share of total central government tax revenue and as a share of GDP, 1948–2006 (%)
6.2 Marginal tax rates at different levels of income, 1910–2006 (%)
6.3 Wealth tax rate for an owner of a large firm, 1911–2006 (% of firm equity)
6.4 Wealth tax rate for an owner of a medium-sized firm, 1911–2006 (% of firm equity)
6.5 Wealth tax rate for an owner of a small firm, 1911–2006 (% of firm equity)
6.6 Direct and total wealth tax for an owner of a large firm, 1911–2006 (% of firm equity) when no reduction rules apply
6.7 Direct and total wealth tax for an owner of a large firm, 1911–2006 (% of firm equity) when reduction rules apply
6.8 Direct and total wealth tax for an owner of a medium-sized firm, 1911–2006 (% of firm equity) when no reduction rules apply
6.9 Direct and total wealth tax for an owner of a medium-sized firm, 1911–2006 (% of firm equity) when reduction rules apply
6.10 Direct and total wealth tax for an owner of a small firm, 1911–2006 (% of firm equity)
6.11 Wealth tax rate for an individual having wealth equal to the large-firm owner, 1911–2006 (%)
6.12 Wealth tax rate for an individual having wealth equal to the medium-sized firm owner, 1911–2006 (%)
6.13 Effective wealth tax rate for an individual having wealth equal to the small-firm owner, 1911–2006 (%)

Chapter 7 (Taxation of Real Estate)
7.1 The state real estate tax, 1985–2013 (%)

 

All tables in the book can be downloaded below:

Chapter 1 (Swedish Taxation since 1862: An Introduction and Overview)
1.1 Different types of taxes with an impact on the agents needed to build a successful firm

Chapter 2 (Labor Income Taxation)
2.1 Marginal tax rates and marginal tax wedges, 1862–2013
2.2 Top marginal tax rates, top marginal tax wedges, and relative top tax income, 1862–2013
2.3 The local tax rate and the consumption tax rate, 1862–2013
2.4 The state marginal income tax rate (appropriation tax), 1862–1910
2.5 Extra temporary appropriation tax, 1871–1902
2.6 The state marginal income tax rate (appropriation tax), 1911–1928
2.7 The state marginal income tax rate, 1903–1919
2.8 The state marginal income tax rate, 1920–1947
2.9 The state marginal income tax rate, 1948–1956
2.10 The state marginal income tax rate, 1957–1970
2.11 The state marginal income tax rate, 1971–1975
2.12 The state marginal income tax rate, 1976–1978
2.13 The state marginal income tax rate, 1979–1981
2.14 The state marginal income tax rate, 1982–1984
2.15 The state marginal income tax rate, 1985–1987
2.16 The state marginal income tax rate, 1988–1990
2.17 The state marginal income tax rate, 1991–1998
2.18 The state marginal income tax rate, 1999–2013
2.19 Defense taxes, 1913, 1918–1919
2.20 Defense surtax, 1918
2.21 Defense taxes during World War II, 1939–1947
2.22 The local progressive income tax (den kommunala progressivskatten),1920–1938
2.23 The state equalization tax (den statliga utjämningsskatten), 1928–1938
2.24 The extra state income tax (den statliga extra inkomstskatten), 1932–1938
2.25 The basic state and local allowances, 1920–1990
2.26 Basic state income allowances, 1938–1947
2.27 Basic state income allowances, 1948–1952
2.28 Basic local and state income tax allowances, 1971–1974
2.29 Basic local and state income tax allowances, 1991–1992
2.30 Basic local and state income tax allowances, 1993–1994
2.31 Basic local and state income tax allowances, 1995–1996
2.32 Basic local and state income tax allowances, 1997–1998
2.33 Basic local and state income tax allowances, 1999–2000
2.34 Basic local and state income tax allowances, 2001–2002
2.35 Basic local and state income tax allowances, 2003–2004
2.36 Basic local and state income tax allowances, 2005
2.37 Basic local and state income tax allowances, 2006–2013
2.38 National basic pension contribution, 1913–1921
2.39 National basic pension contribution, 1922–1935
2.40 National basic pension contribution, 1936–1974
2.41 Health insurance fee, 1955–1962
2.42 Health insurance fee, 1963–1966
2.43 Health insurance fee, 1967–1973
2.44 Health insurance fee, 1974
2.45 General employee-paid social security contributions, 1993–2013
2.46 Tax credits, 1999–2002
2.47 Earned income tax credit, 2007
2.48 Earned income tax credit, 2008
2.49 Earned income tax credit, 2009
2.50 Earned income tax credit, 2010–2013
2.51 Employer-paid social security contributions, 1955–2013

Chapter 3 (Capital Income Taxation)
3.1 Taxable share of capital gains
3.2 Tax allowances in different time periods
3.3 The state marginal tax rate (appropriation tax), 1862–1910
3.4 Temporary appropriation tax
3.5 The state marginal tax rate, 1903–1910
3.6 The state income tax rate, 1911–1919
3.7 The state income tax rate, 1920–1938
3.8 The state marginal tax rate, 1939–1947
3.9 The state marginal tax rate, 1948–2013
3.10 The local corporate tax rate, 1862–1984
3.11 The local progressive income tax, 1920–1927
3.12 The local progressive income tax, 1928–1938
3.13 The state equalization tax, 1928–1933
3.14 The state equalization tax, 1934–1938
3.15 The defense tax in 1918
3.16 The defense tax in 1919
3.17 The defense tax during World War II
3.18 Marginal personal tax rate on interest income, 1862–2013
3.19 Marginal personal tax rate on dividends, 1862–2013
3.20 Effective accrued capital gains tax for an average production worker, 1862–2013 (long-term possession)
3.21 Marginal effective tax rate (METR) on capital income, 1862–2013

Chapter 4 (Taxation of Goods and Services)
4.1 Sales tax rates and value added tax rates, 1941–2013
4.2 Differentiated value added tax rates 1991–2013 (%)
4.3 Customs duties, specific consumption taxes, and general consumption taxes, percent of state tax revenue
4.4 Customs duties, specific consumption taxes, and general consumption taxes, percent of total tax revenue
4.5 Customs duties, specific consumption taxes, and general consumption taxes, percent of GDP
4.6 Specific consumption taxes, percent of state tax revenue
4.7 Specific consumption taxes, percent of total tax revenue
4.8 Specific consumption taxes, percent of GDP

Chapter 5 (Inheritance and Gift Taxation)
N.B. Due to the revision table numbers refer to the WP version.
1. Inheritance tax schedule, 1885–1894
2. Inheritance tax schedules, 1895 – April 1909
3. Inheritance tax schedules for Class I, II and III, May 1910–1911
4. Inheritance tax schedules for Class I and II, 1912–1914
5. Inheritance tax schedules for Class III and IV, 1912–14
6. Inheritance tax schedules for Class I and II, 1915–1917
7. Inheritance tax schedules for Class III and IV, 1915–1919
8. Inheritance tax schedules for Class I and II, 1918–1919
9. Inheritance tax schedules for Class I and II, 1920 – June 1933
10. Inheritance tax schedules for Class III and IV, 1920 – June 1933
11. Inheritance tax schedules for Class I and II, July 1933–1958
12. Inheritance tax schedules for Class III and IV, July 1933–1958
13. Estate tax schedules, 1948–1958
14. Inheritance tax schedules, 1959–1970
15. Inheritance tax schedules, 1971–1980
16. Inheritance tax schedules, 1981–1986
17. Inheritance and gift tax schedules, 1987–1990
18. Inheritance and gift tax schedules, 1991
19. Inheritance and gift tax schedules, 1992–2004
20. Taxable share of capital gains on stock holdings, 1911–1990
A1. Swedish consumer price index, 1884–2005 (1884 = 100)
A2. Average annual wage for a full-time production worker (APW) in SEK, 1884–2004
A3. Taxable limits (1894–1970) and basic exemptions (1971–2004) for children in nominal and real terms, 1894–2004

Chapter 6 (Wealth Taxation)
6.1 The combined state income and wealth tax, 1911–1919
6.2 The 1913 defense tax and the extra income and wealth taxes of 1918–1919
6.3 The defense surtax, 1918
6.4 The combined income and wealth tax, 1920– 1938
6.5 The local progressive income tax (den kommunala progressivskatten), 1920–1927
6.6 The local progressive income tax (den kommunala progressivskatten),1928–1938
6.7 The state equalization tax (statliga utjämningsskatten), 1928–1933
6.8 The state equalization tax (statliga utjämningsskatten), 1934–1938
6.9 State extra income and wealth tax, 1932–1935
6.10 State extra income and wealth tax, 1936–1938
6.11 The 1938 income and wealth tax, 1939–1947
6.12 The 1939 defense tax
6.13 The 1940 defense tax
6.14 The defense tax, 1941–1947
6.15 The 1934 separate tax on wealth, 1934–1938
6.16 The 1938 separate tax on wealth, 1939–1947
6.17 The 1947 wealth tax, 1948–1952
6.18 The 1953 wealth tax, 1953–1956
6.19 Wealth tax, 1957–1964
6.20 Wealth tax, 1965–1969
6.21 Wealth tax, 1970
6.22 Wealth tax, 1971–1973
6.23 Wealth tax, 1974–1980
6.24 Wealth tax, 1981–1982
6.25 Wealth tax, 1983
6.26 Wealth tax, 1984–1989
6.27 Wealth tax, 1990
6.28 Wealth tax, 1991
6.29 Wealth tax, 1992–1995
6.30 Wealth tax, 1996–2000
6.31 Wealth tax, 2001
6.32 Wealth tax, 2002–2004
6.33 Wealth tax, 2005–2006

Chapter 7 (Taxation of Real Estate)
7.1 The local guaranteed tax system, 1920–1986 (%)
7.2 Imputed rent on owner-occupied houses (villaschablonen),1954–1966 (%)
7.3 Imputed rent on owner-occupied houses (villaschablonen), 1967–1990 (%)
7.4 The state real estate tax, 1985–1991 (%)
7.5 The state real estate tax, 1990–2013 (%)
7.6 Local real estate fee, 2008–2013 (SEK)
7.7 The most important tax reforms for real estate
7.8 Basic tax
7.9 Estimated importance of real estate income tax, state level
7.10 Estimated importance of real estate income tax, local level
7.11 Real estate tax at the local level (unadjusted figures)
7.12 Real estate tax at the local level (adjusted figures) and the importance of the local real estate tax during the guaranteed tax system
7.13 The state real estate tax and local real estate fee
7.14 Tax subsidies on owner-occupied housing
7.15 Estimated tax reductions due to interest expenses on household mortgage loans (billion)
7.16 Stamp duty


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Reference:

Henrekson, Magnus and Mikael Stenkula, eds. (2015). Swedish Taxation: Developments since 1862. New York: Palgrave Macmillan.

Magnus Henrekson

Contact

Ph: +46 (0)8 665 4502
magnus.henrekson@ifn.se

Mikael Stenkula

Contact

Ph: +46 8 665 4530
Mob: +46 73 844 18 78
mikael.stenkula@ifn.se

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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