Less Taxes, More Work? Tax Changes in Sweden Can No Longer Be Justified by Dynamic Effects, Researcher Says

In Sweden, governments can no longer justify tax changes with dynamic effects, as has been done in Finland this spring. In previous years, the situation was different in the neighboring country, which gave rise to a small joke, says researcher Håkan Selin. “Due to the severe recession, the effects were hardly seen to materialize. People then said that things are paid for with dynamic effects.”