The classical corporate profits tax in the United States involves non-neutralities between: different sources of financing; different forms of business organization; and retaining or distributing earnings and may result in the U.S. investor being at a disadvantage vis-à-vis foreign investors....

This paper examines the possibility of ascertaining the welfare changes that occur when a consumption tax replaces an equal-yield income tax. It finds that those with saving/income ratios greater than the social saving/income ratio under the income tax will surely benefit and those with ratios...

The Icelandic government has launched a review of the tax system, with a view to improving its income redistribution, growth orientation, and efficiency features, as well as increasing its revenue mobilization potential. It aims at minimizing detrimental effects on employment and growth, and at...

Compared with its U.S. and U.K. counterparts, the Labor Tax Credit (LTC) is likely to have more limited effects on incentives for primary-earners to enter the labor force, because of the smaller size of the credit. Any significant increase in the LTC to strengthen its effect on the still large...

This 2006 Article IV Consultation highlights that a broad-based economic upturn is under way in Sweden, spurred by strong global growth and supportive fiscal and monetary policies. Private consumption has served as the engine of expansion, supported by resurgence in investment and buoyant...

In Sweden, the authorities have indicated that their medium-term fiscal strategy is based on restraining expenditures through nominal ceilings and maintaining a fiscal surplus target of 2 percent of gross domestic product (GDP), measured as an average over the cycle. The mission has praised the...

This Selected Issues paper on Sweden analyzes possible adjustments to the fiscal framework that the authorities may wish to consider. The paper starts with a brief description of Sweden’s fiscal framework, followed by an assessment of the framework’s strengths and weaknesses. The scope for...

This 2002 Article IV Consultation highlights that a cyclical slowdown in domestic demand coupled with global economic weakness led to slower growth of Sweden in 2001. Private consumption stagnated despite rising disposable income, owing to adverse confidence and wealth effects from the continued...

This Selected Issues paper on Sweden reviews economic developments in Sweden during 1994–98. In 1994, the general government expenditure-to-GDP ratio stood at 70 percent, up from below 60 percent of GDP in the late 1990s; meanwhile, the revenue ratio was just under 60 percent of GDP, down from...