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Swedish tech startups and scaleups

swedishtechnews.com

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Re: Swedish tech startups and scaleups

#41

Post by INTPenis »

archydeb wrote: post #28

I heard that Sweden's high income tax actually incentivised startups, because the only way to get _seriously_ wealthy was through capital gains. Does anybody know whether that's true? If so, it really undermines the narrative that is somewhat dominant in Britain, that high income tax will disincentivize entrepreneurship and innovation etc etc

I'm just a layman when it comes to all that but as someone who was raised in Sweden and lived here all my life I feel like the safety net that the government provides plays a huge role in people feeling free to start their own business, or their own band.

When you know you won't become homeless due to a failed venture it becomes easier to take a chance on something.

Re: Swedish tech startups and scaleups

#42

Post by ramigb »

sandebert wrote: post #33
SOLAR_FIELDS wrote: post #23

Earlier quoted context omitted.

A shame, because IMO Sweden has one of the better gaming start up scenes in the world as well.

Might you perhaps be the Swedish musician Solar Fields, who also made the music for the game Mirror's Edge?

I have no idea if he is or he is not who you are asking him, but it's super impressive that you can recognize a musician name from working on a game. Respect for that sir a lot of musicians would appreciate that.

Re: Swedish tech startups and scaleups

#43

Post by geysersam »

codethief wrote: post #29
archydeb wrote: post #28

I heard that Sweden's high income tax actually incentivised startups, because the only way to get _seriously_ wealthy was through capital gains. Does anybody know whether that's true? If so, it really undermines the narrative that is somewhat dominant in Britain, that high income tax will disincentivize entrepreneurship and innovation etc etc

No idea about the situation in Sweden but generally speaking I'd say it depends a lot on whether "income" in "income tax" also includes capital gains.

Don't know any country where it does. In Sweden it certainly doesn't.

Re: Swedish tech startups and scaleups

#45

Post by catears »

archydeb wrote: post #28

I heard that Sweden's high income tax actually incentivised startups, because the only way to get _seriously_ wealthy was through capital gains. Does anybody know whether that's true? If so, it really undermines the narrative that is somewhat dominant in Britain, that high income tax will disincentivize entrepreneurship and innovation etc etc

My understanding, as a Swedish native, is that income from labour is taxed rather high (i think 70%+ for income over a certain amount). However, capital gains are taxed comparatively low. The two most common ways tax either 30% of the profit, or 1-3% of the annual total value (ish, I don't know the exact numbers and they are probably changing from year to year).

How the incentives play out you have to ask someone else about tough ;)

Edit: Got curious and looked up income tax. Turns out I was slightly wrong, Income is regularly taxed around 55% for really high income, but if you also count in VAT ("moms" in swedish) you get ~70% taxation.

Re: Swedish tech startups and scaleups

#46

Post by missedthecue »

junofan wrote: post #39
archydeb wrote: post #28

I heard that Sweden's high income tax actually incentivised startups, because the only way to get _seriously_ wealthy was through capital gains. Does anybody know whether that's true? If so, it really undermines the narrative that is somewhat dominant in Britain, that high income tax will disincentivize entrepreneurship and innovation etc etc

The only thing that incentivizes startups is access to capital. You need rich people.

Exactly. How many tech startups today are funded directly or indirectly by successful founders and tech workers? Is 90% understating it?

Re: Swedish tech startups and scaleups

#47

Post by LtWorf »

geysersam wrote: post #43
codethief wrote: post #29

Earlier quoted context omitted.

No idea about the situation in Sweden but generally speaking I'd say it depends a lot on whether "income" in "income tax" also includes capital gains.

Don't know any country where it does. In Sweden it certainly doesn't.

It doesn't but they are taxed the second you sell them off.

So cool… you're rich but if you actually want to use the money it is taxed.

Re: Swedish tech startups and scaleups

#50

Post by marsven_422 »

archydeb wrote: post #28

I heard that Sweden's high income tax actually incentivised startups, because the only way to get _seriously_ wealthy was through capital gains. Does anybody know whether that's true? If so, it really undermines the narrative that is somewhat dominant in Britain, that high income tax will disincentivize entrepreneurship and innovation etc etc

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