Comment by Jensson | Hacker News Reader

Comment by Jensson | Hacker News Reader

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I'm from Sweden, not USA. I think there are many problems with USA, but it isn't capitalism at least, I'd say the major problem is that their democracy doesn't properly represent the will of the people. Sweden isn't perfect, but I don't see many countries that does a better job, and Sweden is very capitalist, we voted about going towards communist but people didn't want to. Instead we have a strong capitalism, but with relatively high taxes and high government benefits, but other than that governments doesn't meddle much with companies, so freedom to do business is very high.

If Cuba was a democracy then I would disagree with the sanctions, but I don't think it is wrong to pressure a government into giving proper voting rights to its people. If Cuba actually implemented democracy and USA still sanctioned them then that would be bad, but that isn't the situation we are in.

The issue with Sweden is that it taxes work, not wealth.

You easily hit the 56% rate on income tax and even the poorest workers pay 25% VAT, meanwhile wealthy landowners and shareholders pay no inheritance tax and minimal capital gains and property tax.

So it impedes social mobility and encourages hard workers to move abroad - this has been made much worse with the refugee crisis too, as they're practically discouraged to work hard. And now look at the healthcare crisis, etc. as wages are a pittance compared to the USA, Norway, Denmark, Switzerland, etc.

Taxing work instead of wealth greatly encourages Swedes to start companies. I think that is a big reason why we have so many successful start-ups from Sweden. Sweden discourages the corporate climbers, it is a very bad way to make money here, I don't think that is bad in itself, it means that smart people will try to do something outside of existing companies, either by moving abroad or by starting a company.

But I am not stupid, I too moved to Switzerland to work since it netted me many times more money per hour worked. That is why I said that Sweden isn't perfect, I'm not sure what the perfect system is, but Sweden is still pretty good.

Capital gains tax in Sweden is 30% and property tax is around 0.75% IIRC. I don't think they are that low - they're higher than most of Europe in fact.

And VAT is a double-edged sword... It's the only tax that essentially nobody can avoid, and thus the only tax that also applies to people who are already wealthy and could otherwise live their life without paying any tax.

>strong capitalism, but with relatively high taxes and high government benefits

So, communism, at least according to US conservative perspective.

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