There is scant evidence of business owners engaging in tax-motivated shifts in organizational form. The main reason is the lack of micro data for tracking the movement of taxpayers across organizational modes. By utilizing rich Norwegian micro data on individuals, firms, and firms' owners in the...

This paper provides an efficiency argument in favor of progressive labor income taxation. When the consumer faces a trade-off between investments in financial and human capital, a proportional comprehensive income tax tends to discriminate in favor of human capital investments. This effect is...