This is trash. Basically right-wing propaganda for Canadians. Do a bit of reasearch on the institute. Not sure why this type of stuff is posted on Hacker News.

Well, the spending has to come from somewhere. But you'd be right to point out that in addition to taxes, we also have to consider government borrowing (which the full publication does to some extent).

Also, the article isn't claiming that Sweden is not a "welfare state". I calls it so in the title. It's claiming that they are paying for it with a higher tax burden on the middle-class.