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what kind is it? : Income Tax Calculation for Sweden (10 points) eden is known f

ID: 1120901 • Letter: W

Question

what kind is it? : Income Tax Calculation for Sweden (10 points) eden is known for having an extensive array of positive benefits ir citizens feducation, health care, national pension fund, generous Sn pro t, ect]. However, these benefits are costly ) BeSDOLLARS] living in the capitol of Stockholm Sweden (takenfrom the Swedish government's versikholm Sweden (taken from the unemployment, ectne an th Below are the actual taxes are the actual taxes paid for a Swedish citizen earning 7,000 dollars ear(usare INSTRUCTIONS b) add up the taxes to arrive at a total tax figure of the Internal Revenue Service). the "Net Taxable Income" number calculate each tax listed n subtract the total tax from the "Net Taxable Income" number to arrive c) the at the "Net Income" figure (the amount you actually see on your pay check) 77,000 Gross Salary Personal Deductions -1,584 Net Taxable Income 75,416 Municipal Tax County Tax High Tax Federal Tax Net Income (after Tax) rner on income: List of Taxes Paid by the average Swedish wage ea 19.09143% Municipal Tax Rate

Explanation / Answer

Gross salary = 77000

Personal deductions = 1584

Net taxable income = 75416

Muncipal tax = 19.09143%

Country tax rate = 12.02397%

High tax rate = 0.059364%

Federl tax rate = 32.1059%

Now calculation

'Muncipal tax = 75416 x 19.09143/100 = 14397.99

Country tax rate = 75416 x 12.02397/100 = 9067.99

High tax = 75416 x  0.059364/100 = 44.77

Federal tax = 75416 x 32.1059/100 = 24212.99

a) Net income = 75416 - 14397.99-9067.99-44.77-24212.99 = 27692.26

b) Percent = Net incomex100/ gross salary

% = 27692.26x100/77000 = 35.97

c) tax wedge = Gross income - Net income = 77000 - 27692.26 = 49307.74