Magnus Henrekson, the head of Sweden’s Research Institute of Industrial Economics, points to the country’s lack of any form of wealth tax as a key motivation for entrepreneurs to make and keep their money.
Sure, without a wealth tax there’s more incentive to become wealthy. But there are many places without a wealth tax and not all of them have a start up scene like Sweden.
CGT at 30% when income tax can top 60% (including social charges) might be an incentive. No inheritance tax so dynastic fortunes can be created might help. Being a more free market economy than the UK or US could be a boost too. But the absence of a wealth tax? Naah, that’s too common a feature.