Full resolution (JPEG) - On this page / på denna sida - III. Constitution and Administration. Introd. by E. Hildebrand - 2. State Administration. By E. Söderberg - State Finances. By Eli F. Heckscher
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■2-20
III. CONSTITUTION AND ADMINISTRATION.
system in a manner peculiar to Sweden, inasmuch as one-sixtieth part of the
value of the property is added to the income and the amount thus obtained
forms the assessed amount. Consequently, as one-sixtieth, or 1 2/3 % of the
value of the property, is added, the income from the property ("funded") income
will be one-third more heavily taxed than other income, if it be assumed that
the income forms 5 % (three times 1 2la %) of the value of the property. The
dividends of limited liability companies are taxed at least twice, viz. the company’s
entire profits and the dividend distributed to each shareholder besides; in the
case of a company holding shares in another company the same amount will
be taxed thrice. The taxation of the company is graduated from 2 % (up to
a profit of 4 %) up to 5’86 % (in the case of profits of more than 100 %).
Of an altogether exceptional character is the enormous Defence Tax
(värnskatt) passed in 1914, to be devoted entirely to the great reorganization of the
Army and Navy, and intended to be distributed over the three years 1915 —
1917 (or, possibly, 1918). Its total amount is 75 mill, kr., assessed upon some
52 000 private tax-payers and 3 200 companies. As it is intended to fall
exclusively on the well-to-do, incomes under 5 000 kr. and properties under 30 000,
unless combined, are exempt, and the main burden will be carried by the owners
of great property or "unearned" income. As in the Income and Property Tax,
the assessed amount consists of the income plus a fraction of the property value;
but this fraction is one-tenth (as against one-sixtieth in the other tax), and,
consequently, "unearned" income is taxed as heavily as an "earned’- income of
thrice the same amount (if a yield of five per cent on the property value is
assumed). The progression is very steep, ascending from 1 1/s % to 12 % (in
the three years); in the case of pure property income this is equivalent to 4 V»
to 36 % of the income, and even considerably more, if the property yields less
than five per cent. Assessed amounts of more than 100 000 kr. are supposed
to defray no less than 57 1/2 % of the whole tax on private persons.
Limited liability companies pay 0’3—15’75 % of their profits (in the three years),
the double taxation occurring in the Income and Property Tax reappearing in
the new tax. Altogether, this probably is one of the most daring experiments
in graduated and differentiated taxation entered upon in modern times, especially
when the comparatively limited number of great property owners in Sweden is
considered (cf. pp. I, 156 foil.). The character of the tax will stand out clearly
from a comparison with the far-famed German Wehrbeitrag of 1913. On the
principles of the German tax, the Swedish one would have produced less than 44
mill, kr., instead of the 75 millions required from it; and, consequently, the rates
of the German scheme had to be increased, on an average, by more than half
(54*6 %) upon private taxpayers and had to be considerably more than doubled
(increased by 129’3 %) upon companies. It is now, however, confidently expected
that the Swedish tax will bring in considerably more than was estimated.
Of the other taxes on income and property mention may be made of the
Succession Duty (which comes under the head of stamp-duties and is calculated
at 6 000 000 kr. for 1915). This is steeply graduated, the scale varying with
the size of the various shares inherited and running to as much as 4 % of the
value of the property for direct descendants and to 16 % for more distant heirs
or persons unrelated to the deceased. The scale is much steeper than in
Denmark and Norway and even approximates that which is found in very wealthy
countries such as England and France, although direct comparisons are rendered
difficult by differences in the form of the tax. Gifts also are covered by this tax.
What are commonly styled indirect taxes — but the Budget avoids this
highly ambiguous expression — that is to say, taxes on consumption,
amount in the State Budget of 1915 to about one half (49-7 %) of the
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