The semi-dual income tax typically combines a progressive tax schedule for labour and pension income with low and often flat and differentiated nominal tax rates on some forms of capital income. This paper discusses the rationale for the adoption of semi-dual income tax in the taxation of...

The paper assesses the distributional and efficiency/disincentive aspects of the Greek indirect tax system, which provides 60% of total tax revenue. The marginal welfare costs of broad commodity groups were computed to identify welfare-improving directions of reform. The disincentive effects...

This paper examines the optimal direction of marginal income tax reform in the context of New Zealand, which recently reduced its top marginal income tax rate to one of the lowest in the OECD. A behavioural microsimulation model is used, in which social welfare functions are defined in terms of...

Policy makers are generally interested in both the anti-poverty impact and the efficiency of reforms. To connect these two dimensions, I measure the poverty gap change per unit of net revenue that tax-benefit reforms produce. To isolate the impact of reforms and account for labour supply...

This paper presents annual Swedish time series data on the top marginal tax wedge and marginal tax wedges on labor for a low, average and high income earner for the period 1862 to 2010. We identify four distinct periods separated by major tax reforms. The tax system can be depicted as...

This paper describes the evolution of capital income taxation, including corporate, dividend, interest, capital gains and wealth taxation, in Sweden between 1862 and 2010. To illustrate the evolution, we present annual time-series data on the marginal effective tax rates on capital income (METR)...

Tax reform proposals affect individual welfares in ways which strongly depend on the nature of specialization in household production and the pattern of trade within households. Variation in the degree of specialization in domestic production across households strongly influences the impacts on...

This paper discusses tax policy measures to reduce corporate tax avoidance by extending taxation in the source country without imposing double taxation. We focus on four options: Bilaterally restricting interest and royalty deductibility, introducing an inverted tax credit system, levying...

This paper analyzes whether a dividend tax cut for owner-managers of closely held corporations encourages income shifting, income generation, or both. We use rich, micro data from Sweden for the period 2000 - 2011 comprising the entire Swedish population, as well as firmand individual-level data...

We study the optimal tax system when taxpayers earn different kinds of income by supplying different inputs. Imperfect substitution between inputs allows for general equilibrium effects. We consider any type of cross-base responses to tax changes such as income-shifting. Formalizing the tax...