We analyse recent proposals to shift the tax burden away from low-paid labour, assuming a dual labour market where the "good"high-paying jobs are rationed. A shift in the tax burden from low-paid to high-paid workers has an ambiguous effect on the level of aggregate employment while the...

The paper discusses the recent drive towards a system of dual income taxation (DIT) in the Nordic countries. The pure version of this system combines progressive taxation of labour and transfer incomes with a proportional tax on income from capital at a level equal to the corporate income tax...

A Norwegian tax reform committee recently proposed a personal tax on the realized income shares after deduction for an imputed risk-free rate of return. This paper describes the design of the proposed shareholder income tax and shows that it will be approximately neutral in several important...

We analyze the distribution and taxation of top incomes in Germany during the 1990s on the basis of individual tax returns data. We derive a measure of economic income from taxable gross income as reported in the tax returns. Thanks to complete sampling, we can deliver a very precise description...

The dual income tax combines a progressive tax schedule for labour income with a low flat tax rate on capital income and corporate income. This paper restates the case for the dual income tax and discusses alternative methods of taxing business income under such a tax system, paying special...