Swedes pay 25% less tax than Germans!
2011/02/20 § Leave a comment
Time an again you can hear the Swedes talk about their high taxes. And if you are aware of the issue you will find this myth repeated even in foreign media.
In Germany for instance, where they repeatedly talk of the large Swedish tax burden. This notion is so utterly and bizarrely wrong that one wonders what happened with simply checking the facts. But journalists today can obviously only copy and paste from Wikipedia, and even that only within tight limits.
The truths is that in Sweden the overall tax burden on wages and income is so low that it leaves an average earning person with approximately 25% more income after tax as compared to Germany!
The average income in Germany is 42535 Euro (data 2010), or per month 3544.58 EUR. Today this equals 31039.20 SEK.
After tax this gives the German employee 2141.50 EUR (18752.70 SEK).
The Swedish employee would after paying taxes keep a staggering 23282 SEK or 2658.73 EUR! A mind-boggling difference of 24.2% !!!
Please, keep that in mind next time someone mindlessly repeats what has so wrongfully been said too many times. If you compare income you cannot compare the actual income tax being paid, but you must also consider what is covered by the tax.
In Sweden, contrary to for example Germany, the tax includes health-care, social security, and pension. All this has to be paid extra in Germany. Hence you can look forward to a nice pension and yet have the money to save some extra for the retirement time.
This is a great advantage when you are younger which often means that wages are not that high yet. But even putting middle aged or older individuals in a better situation than in Germany. Yes, you got it good in Sweden…