Pomperipossa in Monismania
"Pomperipossa in Monismania" (also called Pomperipossa in the World Of Money) is a satirical story written by the Swedish children's book author Astrid Lindgren in response to the 102% marginal tax rate that she incurred in 1976. It was published starting on 3 March 1976 in the Stockholm evening tabloid Expressen and created a major debate about the Swedish tax system.
The marginal tax rate above 100%, dubbed the 'Pomperipossa effect', was due to tax legislation that required self-employed individuals to pay both regular income tax and employer's fees.
The story, a satirical allegory about a writer of children's books in a distant country, led to a stormy tax debate and is often attributed as a decisive factor in the defeat of the Swedish Social Democratic Party, for the first time in 40 years, in the elections later the same year. Lindgren, however, continued to support the party for all her life.