By Scandinavian countries, we mean the cluster of three countries- Norway, Sweden, and Denmark. These are grouped together because of their varying yet similar cultural heritage. They also share similarities in the common tongue.
These countries were the first to establish democratic rule in Europe.
The answer is right here, in this Index-
These countries tend to be world-leading in the Happiness index. And why not? They rock top 10 rankings in many of the good indices. They also constitute some of the highest GDP per capita. Just look at 2016's ranking-
High Employment rates, low poverty, high life expectancy, with a high standard of living make up to the smiles on their faces. Also, These countries are so good at recycling, they import trash from others to recycle.
Governments in these countries are least corrupted. They generate some of the highest GDP in the World.
But there is a catch.
Tax on personal income is around 50%, which is very high. If you want to buy a car, you’ll probably end up spending 100% more on taxes. Even clothes and food are pricey here. Consumers here pay some of the highest taxes in the world. The VAT is fixed at 25%.
If you want to drink beer in your friendly pub, you'll be paying 2.5 times its price in the rest of Europe.
Even IKEA, founded in Sweden, shifted their Headquarters to the Netherlands because of high taxes.
This tax however majorly contributes to their GDP.
And, their currency, Krona remains strong. These countries, therefore, are tough on tourists. You'll end up spending much more than you normally would if you plan a trip here.
But all this tax helps the government get deeper into the system and help people. Because of such high taxes, these countries have a high standard of living. This has also increased happiness because of job security and financial security. Taxes provide for free education, cheap child care, functioning public transport, and even free health service!
Maybe India should follow their model? Drop your answers below.