Table 1
Effective marginal tax rates for different combinations of owners and sources of finance in 1970 and 1980 (10 percent real pre-tax rate of return at actual inflation rates).
| Debt | New share issues | Retained earnings | |
|---|---|---|---|
| 1970 | |||
| Households | 51.3 | 122.1 | 57.1 |
| Tax-exempt institutions | -64.8 | 15.9 | 32.7 |
| Insurance companies | -45.1 | 42.4 | 41.2 |
| 1980 | |||
| Households | 58.2 | 136.6 | 51.9 |
| Tax-exempt institutions | -83.4 | -11.6 | 11.2 |
| Insurance companies | -54.9 | 38.4 | 28.7 |
Notes: All calculations are based on the actual asset composition in manufacturing. The following inflation rates were used: 7 percent for 1970 and 9.4 percent for 1980. The calculations conform to the general framework developed by King and Fullerton (1984). The average holding period is assumed to be 10 years. A negative tax rate implies that the rate of return after tax is greater than before tax. For instance, a tax rate of -83 percent for a debt-financed investment owned by a tax-exempt institution in 1980 implies that a real rate of return of 10 percent before tax becomes 18.3 percent after tax.
Source: Södersten (1984).
Table 2
Effective marginal tax rates for different combinations of owners and sources of finance, 1991,1994, and 2005 (10 percent real pre-tax rate of return at actual inflation rates).
| Debt | New share issues | Retained earnings | |
|---|---|---|---|
| 1991 | |||
| Households | 31.7 | 61.8 | 54.2 |
| Tax-exempt institutions | -9.4 | 4.0 | 18.7 |
| Insurance companies | 14.4 | 33.3 | 31.6 |
| 1994 | |||
| Households* | 32.0 | 28.3 | 36.5 |
| Tax-exempt institutions | -14.9 | 21.8 | 21.8 |
| Insurance companies | 0.7 | 32.3 | 33.8 |
| 2005 | |||
| Households* | 27.9 | 58.1 | 42.7 |
| Tax-exempt institutions | -1.2 | 23.2 | 23.1 |
| Insurance companies | 18.2 | 44.6 | 42.6 |
Notes: The calculations conform to the general framework developed in King and Fullerton (1984). The following inflation rates were used: 5 percent for 1991, 2 percent for 1994, and 2 percent for 2005. The average holding period is assumed to be 10 years.
Source: Calculations were provided by Jan Södersten; see Södersten (1993) for assumptions and methods.
Table 3
Effective owner-level taxation in 1973 for a firm having equity of SEK 10 million and a 10 percent real rate of return before tax when all profit accrues to the owner in the form of dividends.
| SEK | |
|---|---|
| Net worth/equity of firm | 10,000,000 |
| Nominal return on equity | 1,700,000 |
| Real return on equity before tax | 1,000,000 |
| Corporate tax (52 percent) | 884,000 |
| Dividend to owner | 816,000 |
| Dividend tax (75 percent) | 612,000 |
| Dividend after tax | 204,000 |
| (Wealth tax on the net worth of the firm) | 240,000 |
| Wealth tax when reduction rule applicable | 120,000 |
| (Total tax payments, full wealth tax | 1,736,000) |
| Total tax payments, reduced wealth tax | 1,616,000 |
| Total tax payments as a share of nominal return | 95.1 percent |
| Total tax payments as a share of real return | 161.6 percent |
Note: Inflation rate is 7 percent; wealth tax = 2.5 percent on wealth exceeding SEK 1 million and SEK 15,000 on the first million. There was also a rule that total tax payments should not exceed 85 percent of taxable income, although the wealth tax could never be reduced by more than 50 percent.
Source: The relevant tax rates are taken from Henrekson and Stenkula (2015).
Table 4
Effective owner-level taxation in 2015 for a firm having equity of SEK 60 million and a 10 percent real rate of return before tax when all profit accrues to the owner in the form of dividends.
| SEK | |
|---|---|
| Net worth/equity of firm | 60,000,000 |
| Nominal return on equity | 6,000,000 |
| Real return on equity before tax | 6,000,000 |
| Corporate tax (22 percent) | 1,320,000 |
| Dividend to owner | 4,680,000 |
| Dividend tax (20 percent) | 936,000 |
| Dividend after tax | 3,720,000 |
| Wealth tax on the net worth of the firm | 0 |
| Total tax payments | 2,256,000 |
| Total tax payments as a share of real return | 37.6 percent |
Note: Inflation rate is 0 percent.
Source: The relevant tax rates are taken from Henrekson and Stenkula (2015).
Table 5
Effective owner-level taxation of individually owned listed stock with a market value of SEK 200 billion and a dividend ratio of 3 percent according to the 1973 and 2015 tax code.
| 1973 | 2015 | |
|---|---|---|
| Market value of stock | 200 | 200 |
| Dividend | 6 | 6 |
| Dividend tax (78 percent in 1973; maximum 30 percent in 2015) | 4.7 | 0-1.8 |
| Wealth tax (halved because of reduction rule) | 2.5 | 0 |
| Net | -1.2 | 4.2-6 |
| Tax payments as a share of dividend payout (percent) | 120 | 0-30 |
Note: If the shares were owned by a wholly owned holding company in 2015, no tax was levied on the dividends from the listed stock. For the part of dividends paid out to the owner, the tax rate is 30 percent if the portfolio company is listed; otherwise it is normally 20 or 25 percent.
Source: The relevant tax rates are taken from Henrekson and Stenkula (2015).
Table 6
Inheritance taxation when deceased's own child inherits individually owned listed stock having a market value of SEK 200 billion according to the 1973, 1979, and 2015 tax code.
| 1973 | 1979 | 2015 | |
|---|---|---|---|
| Inheritance tax (65 percent of market value on death date) | 130 | 130 | 0 |
| Capital gains tax (10 percent of sales if sold at market value on death date) | 7.8 | 27.84 | 0 |
| Capital gains tax on sales to pay inheritance plus capital gains tax | 11.0 | 50.2 | 0 |
| Total | 141.0 | 180.2 | 0 |
Note: The capital gains tax in 1973 was 7.8 percent (10 percent of the sales value was taxed as labor income). The capital gains tax in 1979 was 27.84 percent (40 percent of the nominal gain was taxed as labor income at a rate of 87 percent; heirs were allowed to deduct 20 percent as a standard acquisition cost).
Source: The relevant tax rates are taken from Henrekson and Stenkula (2015).
Table 7
Sweden’s wealthiest families in 1963/64 and Sweden’s wealthiest persons and families in 2016, in billion SEK and as a share of GDP.
| 1963/1964 | Billion SEK | Percentage of | 2016 | Billion SEK | Percentage of |
|---|---|---|---|---|---|
| GDP | GDP | ||||
| Fam. Broström | 0.165 | 0.180 | Ingvar Kamprad | 655 | 15.0 |
| Fam. Bonnier | 0.130 | 0.141 | Stefan Persson | 208 | 4.8 |
| Fam. Wallenberg | 0.125 | 0.136 | Hans Rausing | 102 | 2.3 |
| Incl. foundations | 0.500 | 0.545 | Jörn Rausing | 57 | 1.3 |
| Fam. Wehtje | 0.100 | 0.109 | Antonia Ax:son Johnson | 55 | 1.3 |
| Fam. Söderberg | 0.095 | 0.104 | Melker Schörling | 55 | 1.3 |
| Incl. foundations | 0.110 | 0.200 | Finn Rausing | 54 | 1.2 |
| Fam. Ählén | 0.080 | 0.087 | Kirsten Rausing | 54 | 1.2 |
| Fam. Ax:son Johnson | 0.080 | 0.087 | Fredrik Paulsen | 53 | 1.2 |
| Incl. foundations | 0.105 | 0.114 | Ane Uggla | 47 | 1.1 |
| Fam. Kempe | 0.065 | 0.071 | Dan Sten Olsson | 45 | 1.0 |
| Incl. foundations | 0.135 | 0.147 | Bertil Hult | 40 | 0.91 |
| Fam. Edstrand | 0.065 | 0.071 | Fredrik Lundberg | 34 | 0.78 |
| Fam. Bergengren | 0.050 | 0.054 | Carl Bennet | 24 | 0.55 |
| Fam. Kockum | 0.040 | 0.044 | Liselott Tham | 22 | 0.50 |
| Fam. Klingspor | 0.035 | 0.038 | Fam. Kamprad | 682 | 15.6 |
| Fam. Mark/Carlander | 0.025 | 0.027 | Ruben Rausing’s heirs | 274 | 6.3 |
| Fam. Stenbeck | 0.010 | 0.011 | Erling Persson’s heirs | 268 | 6.1 |
| Fam. Ericsson | 0.010 | 0.011 | Fam. Olsson (Stena) | 82 | 1.9 |
| Fam. Lundberg | 56 | 1.3 | |||
| Fam. Douglas | 40 | 0.91 |
Note: GDP 1963: SEK 91.77 billion; GDP 2016: SEK 4,379 billion.
Source: SOU 1968:7 and Veckans Affärer (2016).