recently wrote an editorial outlining what Vermonters can expect with a Swedish style health care system. With recent budget shortfalls and discussion of raising taxes to fill the gap it appears timely to describe what happened in Sweden as taxes climbed. It is known in Sweden as the great "brain drain" and the country may never recover.

As Sweden transformed to a socialist state it was heralded as a glowing example of the success of the socialist paradigm. The quality of life was among the highest in the world and people flocked to Sweden from all over the world.

In the 1980s taxes continued to rise and something unexpected happened. Those Swedes with high incomes started to leave as refugees of the tax system. As ex patriots with citizenship in nations with low tax rates they kept their money and lived in Sweden during the summer when the weather was nice. Instead of collecting a modest amount of tax income from the wealthy the government got none and the socialist dream began to unravel.

Perhaps the most glaring example is Ingvar Kamprad, founder of IKEA and perennial contender for the richest man in the world. As his legal residence is outside Sweden he pays not a Krown in income taxes. He does, however, have homes in Sweden and drives his old Volvo around all summer enjoying the beautiful countryside. My alma mater in Sweden was full of children of former Swedes who wanted their children raised in Sweden but refused to pay the taxes.

Vermont is edging ever closer to this scenario and does so at great peril. Vermont already has an extremely low number of wealthy residents who bear the disproportionate burden of taxation. States like Arizona and Florida keep taxes low to attract "snowbirds" who spend money on durable goods there that would have been spent on taxes in Vermont.

With long harsh winters and beautiful summers Vermont is similar to Scandinavia. Vermont should look to Sweden as a chilling warning regarding the economic realities of irresponsible taxation. People who know how to make money often know how to keep it. They also often have the money to relocate with relative ease. This is a very dangerous combination for Vermont's coffers.

Only a few decades after being looked toward as the closest thing to Utopia on Earth, Sweden has plummeted out the top spot and last year did not even crack the top 25 in national standard of living rankings.

In contrast to having no real choice but to implement a Swedish style healthcare system, Vermont does have options regarding budget shortfalls.

Raising taxes further is one. A far better option is to acknowledge that business is the engine of an economy and to support new business creation in actions, as well as words. Vermont needs a fundamental shift in attitude regarding permitting and taxation. In the end this is not a discussion of morality or fairness. It is one of simple economics.

This shift needs to come very quickly or Vermont will have the misfortune of sharing more with Sweden than beautiful summers.

Anders Holm lives in Charlotte.