Feeling the Burden: Swedish Taxes May Rise Due to Migrants Influx

Due to the influx of migrants, Sweden may increase its taxes. The country will have no means to sustain the migrants and pensioners if re-assessment of the budget doesn't happen.

Sweden is dealing with the migrant crisis and due to that the country is looking to either raise taxes or reduce costs somehow, according to a report published by the Institute of Economic Research, according to the Swedish newspaper FriaTider.

Experts of the Institute every year under government order conduct an assessment of long-term prospects regarding public finances.

The assessment is based on projections for government revenues and expenditures up to 20140 year.

The current tax rates are not sufficient to cover current obligations and welfare benefits taken for the next 25 years, according to an expert body.

If one is to maintain the current staffing of social services without raising taxes, the current budget deficit will gradually rise by 3% of GDP by 2040. In this scenario, by 2040 the national debt will double as a share of GDP.

To maintain the current level of social benefits, taxes and fees as a percentage of GDP will need to increase by about 3%.

Currently, Sweden has one of the highest tax burdens in the world.