place in a few decades. From the mid 90s until today Sweden's economic growth has once again accelerated and has been higher than in most other industrialised countries (including the US) during the last 15 years.
Sweden began slowing the expansion of the welfare state in the 1980s, or even trimming it back, and according to the OECD and McKinsey, Sweden has recently been relatively quick to adopt neo-liberal policies, such as deregulation, compared to countries such as France. The current Swedish government is continuing the trend of moderate rollbacks of previous social reforms. Growth has been higher than in many other EU-15 countries.
Sweden adopted neo-liberal agricultural policies in 1990. Since the 1930s, the agricultural sector had been subject to price controls. In June 1990, the Parliament voted for a new agricultural policy marking a significant shift away from price controls. As a result, food prices fell somewhat. However, the liberalizations soon became moot because EU agricultural controls supervened.
Since the late 1960s, Sweden has had the highest tax quota (as percentage of GDP) in the industrialised world, although today the gap has narrowed and Denmark has surpassed Sweden as the most heavily taxed country among developed countries. Sweden has a two step progressive tax scale with a municipal income tax of about 30% and an additional high-income state tax of 20–25% when a salary exceeds roughly 320,000 SEK per year. Payroll taxes amount to 32%. In addition, a national VAT of 25% is added to many things bought by private citizens, with the exception of food (12% VAT), transportation, and books (6% VAT). Certain items are subject to additional taxes, e.g. electricity, petrol/diesel and alcoholic beverages.
As of 2007, total tax revenue was 47.8% of GDP, the second highest tax burden among developed countries, down from 49.1% 2006. Sweden's inverted tax wedge – the amount going to the service worker's wallet – is
