The Swedish business elite and the gift explosion of 1947

Abstract

ABSTRACT In 1948, the social democratic government of Sweden imposed new wealth transfer taxes including an estate tax. Events have been characterised as the definite breakdown of the co-operation between social democracy and organised business. This article attacks the topic from the perspective of the reproduction of the business elite through the inheritance and the gift. The tax reform triggered an epidemic of generosity. In 1947, gift tax revenue was 20 times higher than the annual averages before and after. We have studied the individual actors of the Swedish business elite as donors and concluded that 76 couples of the business elite transferred 25.2 msek to above all their children. The joint political campaign of organised business against the reform raised 24.8 msek. The result complicates and questions previous assumptions concerning the motives of the business elite for protesting against the tax reform.