Swedish Union presents its demands; Citizen fee & increase ALL taxes!

This morning, a think-tank of LO, one of Sweden's largest unions  (respected and reknown for mindless strikes and other craziness), published a report on how to reform Swedish tax system. The title in the largest newspaper:

"This is how we get a smarter and more just high-tax society"

Well, my dear union, are you familiar with the concept of Oxymoron? It has very little to do with an actual 'moron', altough you certainly are approaching that concept aswell. Oxymoron is an inherent contradiction such as 'bittersweet', 'a warm coldness' or something or the sort. Or, in this case, "just high-tax society".

First of all, taxing is ALL but just. It might actually be the most injust principle I know of. Normally taxes are directed at incomes, sales or property, crucial parts of economic transactions and as such taxes WILL inevitable have an effect on those areas. But more importantly, all of these features (income, sales, property) is created by productive, enterprising and thrifty induviduals pursuying self-interest by serving consumers. Whatever these individuals created is the fruit of their work, entirely belonging to them. Taxes enter this domain by robbing such individuals of their reward. In what universe can such an action be named just?
(Imagine the Usain Bolt situation; An insane amount of training, strict diet, discipline, and after countless hours improving that body of his, the Government steps in and redistribute half of it to less-abled contestants. A just, fair system? Not even close).

The underlying assumption of its entire report, is that high taxes are harmless to the economy, if they're made "in a good way". Such a claim requires an additional post, and I'll focus on that idea at some other point.*

The background for this report is that tax levels have come down in Sweden during the last decades, since the record of 51,5% of GDP (that is, more than every second unit the economy produces was taken in taxes) to some 45%. Appearantly, this has produced a revolution in the lines of Swedish leftists; we lost the unglamourous position of the country with the world's highest taxes. Clearly, something had to be done.

What the creative brains of leftist forefront came up with is the following;

• The Government transforms a healthy surplus in public finances (one of few in Europe) to a 3% deficit of GDP, that is approaching the Spanish deficits, leveling the French or Italian public deficits
• Flat tax reform on income as well as capital gains. Altough, the tax on income would suffer an increase of 10% to current average levels, capital gains of +16% increase of tax rates. 
• 10% increase of employer pension deposit, with accompanied increased state pensions
• Increased employment tax
• A 18 000 SEK/year (Equivalent of £1700/year) Citizen Fee with fussy intentions
• Increase all VAT levels to 25% (that is raising the VAT levels of books, food and restaurants from 6%/12% to 25%)

So, after increasing virtually every tax in the Swedish tax system, they add that corporate tax will be abolished. Woah, I thought, an actual useful thing coming out of a leftist... BUT, replaced by a 'tax on commercial property' unspecified. I assume whatever benefit an abolished corporate tax would bring is ofset by such 'commercial property' tax.

The overall effect on State Budget would be 30% Increased Government Spending, turning a healthy public surplus into deficits and fussy so-called 'improvements' in areas ranging pensions, equality and welfare.

This absolutely knocks US budget quarrels, makes the British disagreement on fiscal policies look like a harmless little poodle and surpasses anything I could even have expected from Swedish leftists. What is a mere 1-5% tax increase US taxpayers suffered from early 2013 budget drama? Swedish leftists absolutely SMASHED anything concievable by their UK or US counterparts.

Yep, that's Sweden for you!

All in all;

Conclusion from the Unions of the land of promised welfare;

it doesn't really matter WHAT you aim to do with funds from taxing population (or the consequence), as long as you raise them to world-record levels, previously unrecognizable by anyone.



___

*It seems that for every post I make, 2-3 more are required. Not too unfamiliar with how an institution such as a state works, by the way. I will probably expand this topic with a post for why every single reform they have suggested are seriously detrimental to swedish economy, to individual property and standard of living.