Pomperipossa in Monismania
Encyclopedia
"Pomperipossa in Monismania" (also called Pomperipossa in the World Of Money) is a satirical story written by the Swedish
children's book author Astrid Lindgren
in response to the 102% marginal tax rate
she incurred in 1976. It was published starting on 3 March 1976 in the Stockholm evening tabloid Expressen
and created a major debate about the Swedish tax system.
The marginal tax rate above 100% which was dubbed the 'Pomperipossa effect' was due to tax legislation which required self employed individuals to pay both regular income tax and employer's fees.
The story, a satirical allegory about a writer of children's books in a distant country, led to a stormy tax debate and is often attributed as a decisive factor in the defeat of the Swedish Social Democratic Party
- for the first time in 40 years in the elections later the same year.
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
children's book author Astrid Lindgren
Astrid Lindgren
Astrid Anna Emilia Lindgren , 14 November 1907 – 28 January 2002) was a Swedish author and screenwriter who is the world's 25th most translated author and has sold roughly 145 million copies worldwide...
in response to the 102% marginal tax rate
Marginal tax rate
In a tax system and in economics, the tax rate describes the burden ratio at which a business or person is taxed. There are several methods used to present a tax rate: statutory, average, marginal, effective, effective average, and effective marginal...
she incurred in 1976. It was published starting on 3 March 1976 in the Stockholm evening tabloid Expressen
Expressen
Expressen is one of two nationwide evening tabloid newspapers in Sweden, the other being Aftonbladet. Expressen was founded in 1944; its symbol is a wasp and slogans "it stings" or "Expressen to your rescue", always on the reader's side....
and created a major debate about the Swedish tax system.
The marginal tax rate above 100% which was dubbed the 'Pomperipossa effect' was due to tax legislation which required self employed individuals to pay both regular income tax and employer's fees.
The story, a satirical allegory about a writer of children's books in a distant country, led to a stormy tax debate and is often attributed as a decisive factor in the defeat of the Swedish Social Democratic Party
Swedish Social Democratic Party
The Swedish Social Democratic Workers' Party, , contesting elections as 'the Workers' Party – the Social Democrats' , or sometimes referred to just as 'the Social Democrats' and most commonly as Sossarna ; is the oldest and largest political party in Sweden. The party was founded in 1889...
- for the first time in 40 years in the elections later the same year.