Arbeitspapier
How successful is the dual income tax?: evidence from the Finnish tax reform of 1993
Dual income tax systems have become increasingly popular; yet, relatively little is known about the consequences of implementing such tax systems. This paper uses a representative panel of taxpayers from the 1993 Finnish tax reform to measure how overall taxable income and the relative shares of capital income and labour income reacted to the reform. The Finnish tax reform appears to be particularly suitable for analysing the effect of separating labour and capital income tax bases. The reform radically reduced the marginal tax rates on capital income to some, but not all, taxpayers, while the taxation of labour income was not reformed at the same time. We find that the reform led to a small positive impact on overall taxable income, but part of the positive response was probably offset by income shifting among the self-employed.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 1875
- Classification
-
Wirtschaft
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Taxation and Subsidies: Efficiency; Optimal Taxation
Fiscal Policies and Behavior of Economic Agents: Household
- Subject
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Steuerreform
Duale Einkommensteuer
Gewinnverlagerung
Finnland
- Event
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Geistige Schöpfung
- (who)
-
Pirttilä, Jukka
Selin, Håkan
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2006
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Pirttilä, Jukka
- Selin, Håkan
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2006
Other Objects (12)
How Successful is the Dual Income Tax? Evidence from the Finnish Tax Reform of 1993
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Business Owners and Income-Shifting between Tax Bases: Empirical Evidence from a Finnish Tax Reform
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How Successful is the Dual Income Tax? Evidence from the Finnish Tax Reform of 1993
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Capital Income Tax Coordination and the Income Tax Mix
Income tax buyouts and income tax evasion
Income Tax Buyouts and Income Tax Evasion
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INCOME TAX
INCOME TAX
Business Owners and Income-Shifting between Tax Bases: Empirical Evidence from a Finnish Tax Reform
Declining Tax Progression and the German Dual Income Tax
Taking off the income tax
How Successful is the Dual Income Tax? Evidence from the Finnish Tax Reform of 1993
Anticipating tax changes: evidence from the Finnish corporate income tax reform of 2005
German income tax : personal income tax, corporate income tax and trade tax
Capital Income Tax Coordination and the Income Tax Mix
Income tax buyouts and income tax evasion
Income Tax Buyouts and Income Tax Evasion
From the Global Income Tax To the Dual Income Tax: Recent Tax Reforms in The Nordic Countries.
INCOME TAX
INCOME TAX
Business Owners and Income-Shifting between Tax Bases: Empirical Evidence from a Finnish Tax Reform
Declining Tax Progression and the German Dual Income Tax