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aid632007
08-07-2011, 05:44 PM
According to this article Sweden in the 1970's had a income tax rate above 100% which was a 102% marginal tax rate my question is could a tax rate this high make the incomes equal and take all the wealth that the millionaires and billionaires have also I don't understand I have had people tell me tax rates on income can't go above 100% than I read this ?

Pomperipossa in Monismania
From Wikipedia, the free encyclopedia

"Pomperipossa in Monismania" (also called Pomperipossa in the World Of Money) is a satirical story written by the Swedish children's book author Astrid Lindgren in response to the 102% marginal tax rate she incurred in 1976. It was published starting on 3 March 1976 in the Stockholm evening tabloid Expressen and created a major debate about the Swedish tax system.

The marginal tax rate above 100% which was dubbed the 'Pomperipossa effect' was due to tax legislation which required self employed individuals to pay both regular income tax and employer's fees.

The story, a satirical allegory about a writer of children's books in a distant country, led to a stormy tax debate and is often attributed as a decisive factor in the defeat of the Swedish Social Democratic Party - for the first time in 40 years in the elections later the same year.

http://en.wikipedia.org/wiki/Pomperipossa_in_Monismania

Anti Federalist
08-07-2011, 05:48 PM
Fire 11?

Yes, tax rates could conceivably go above a 100 percent, meaning you would have to cut a check to government for everything you made that year, plus.

Why is that hard to understand?

libertybrewcity
08-07-2011, 06:10 PM
didn't you start a thread about this already?

Zippyjuan
08-07-2011, 07:54 PM
Marginal tax rate is not the same as average tax rate. Marginal rate is the tax rate applied to the next dollar earned. Average tax rate is the rate you end up paying on all of your money- not all of your money may be subject to the tax rate. Let's take an extreme example. Say there was a 100% marginal tax rate. This rate covers in our example every dollar you earn over $1000- there is zero tax on the first $1000, it is excluded. So now lets earn some money- say $1500. Since the marginal rate is 100% on income over $1000, you will pay $500 in taxes. Your average rate though is different. Your total income was $1500 and you paid $500 in taxes so your AVERAGE tax rate was 33.333%.

wannaberocker
08-07-2011, 08:10 PM
This has nothing to do with the tax rate issue. But i thought it was still cool to listen to Guitar and music legand Yngwie Malmsteen talk about Sweden where he was born and grew up. He paints a rather dark image of life in sweden.

http://www.youtube.com/watch?v=3ZiWIdgLS-Y