Attitudes towards Tax Reform and Progressive Taxation: Sweden 1991-96

Abstract

One of the most debated elements of the Social Democratic reform of the Swedish tax system was the lowered income tax rate, which mainly affected the upper tax brackets. An analysis of public attitudes to the tax reform during three time periods reveals that attitudinal patterns are characterized by stability, both on aggregate and individual levels, and by profound social divisions. Support is more prevalent among more affluent social strata and those affiliated with Bourgeoisie parties compared to workers, low- income earners and those with left-wing preferences. Following attitudinal developments in the aftermath of the tax reform, social conflicts - mainly structured along class dimensions - as well as demands for tax progression tended to increase between 1991 and 1996.