Saturday, April 28, 2012

ZenTiger The Girl Who Played With Fire

From the Wiki, a story about socialism and taxation:
"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.
Countries that try such high marginal income tax rates now would be doomed to fail faster, so it has become necessary to increase taxes through a variety of channels so the effect is much harder to detect. Income tax, FBT, GST, ETS, provional taxes, fuel excise, import duties, compliance costs, rates, forced superannuation deductions, tolls, and so it goes.

And to answer another important question, yes, I think Steig Larsson couldn't resist throwing in a casual link between Lisbeth and Pippi, but another blogger thinks the comparison a little too ludicrous. Obviously, as ludicrous as a 102% tax rate, so not totally out of the question then.

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