The overwhelming majority of scandinavian income tax never leaves the village.
That is, they are invested (not "spent") in local infrastructure, local education, local health care and local elderly care, additionally this major tax is a flat tax.
Property taxes are thus minimal.
The upper income brackets, in general more dependent on larger scale economics, business, out-out-village-higher--education(also free at the point of service), pay an progressively increasing "federal" tax.
Those are some reasons why infrastructure, education and health care is so efficient, the cash stays close enough for local oversight (does not go to "washington") nor dependent on property taxes.
However, I know it is tough when most of the taxes disappears into "washington", one never knows if it will come back or not. |
