In 1990, the government of Sweden introduced a major tax reform to take effect in 1991. The Swedish system prior to the legislation was so complex that the size and magnitude of the likely effects of the reform on incentives to invest were unknown. In this paper, we draw on Södersten (1989) and...

This report examines the taxation of corporate gains on depreciable business property, an important topic that has received little attention in the economic literature. The analysis reveals that current law, under which gains on such sales are taxed at ordinary tax rates and buyers are allowed...