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Secondly, over the years, it appears that the appropriate level of marginal income tax rates has for the most part settled into a reasonable zone; conservatives, like myself, would prefer a lower rate, say in the 28% range, while the upper end of the zone is in the 37% range. The bottom line is, we're really just arguing a difference of 9% or so on the top marginal rate. We'll see if this changes, I suspect it will.
I would take this a step further and say that the appropriate level changes based on other factors.
My limited understanding of Swedish tax policy leads me to believe these tax cuts will spur employment. The more interesting question, to me, is what will the longer term picture look like. Will this increase government revenue due to increased economic activity - again, if Sweden's tax rates are as high as I think they are, this is likely. If they really aren't all that high, I suspect the gains in economic activity will be offset by the loss of tax revenue -- so will they run deficits or cut spending.
Should be interesting to watch.