The dual income tax provides the self-employed entrepreneur with huge incentives to participate in tax minimizing income shifting to have more of his income taxed as capital income. The Norwegian split model is designed to remove these incentives, but it contains loopholes. The present paper...

How the tax system might affect the individual s educational level is well studied. But the question of how the tax system affects the individual s choice of educational type is mostly ignored. This is an important issue, since the educational choice of today s young generation determines the...