Within the framework given by the theory of optimal income taxation this paper investigates the progressivity of the Swedish income tax. On the assumption that taxes distort labour leisure choice some tax reforms are designed that improve social welfare while keeping tax revenues unchanged. The...

The paper argues that cost of capital comparisons across closely held companies and entrepreneurial ventures on the one hand and widely held companies on the other, ought not to be based on an equal level assumption regarding the investors' required rates of return, net of taxes. Theoretical...