scholarly journals Swedish Taxation in a 150-year Perspective

2014 ◽  
Vol 2014 (2) ◽  
pp. 10-42 ◽  
Author(s):  
Mikael Stenkula
Keyword(s):  
Real Estate ◽  
Income Taxes ◽  
Labor Income ◽  
Capital Income ◽  
Tax System ◽  
Payroll Taxes ◽  
The Public ◽  
Key Aspects ◽  
Consumption Taxes ◽  
Over Time

Abstract This paper examines the development of taxation in Sweden from 1862 to 2010. The examination includes six key aspects of the Swedish tax system, namely the taxation of labor income, capital income, wealth, inheritances and gifts, consumption and real estate. The importance of these taxes varied greatly over time and Sweden increasingly relied on broad-based taxes (such as income taxes and general consumption taxes) and taxes that were less visible to the public (such as payroll taxes and social security contributions). The tax-to-GDP ratio was initially low and relatively stable, but from the 1930s, the ratio increased sharply for nearly 50 years. Towards the end of the period, the tax-to-GDP ratio declined significantly.

Introduction of a Local Real Estate Tax in Croatia: A Survey of Expert and Public Opinion

2016 ◽  
Vol 14 (1) ◽  
pp. 53-74
Author(s):  
Helena Blažić ◽  
Hrvoje Šimović ◽  
Ana Štambuk
Keyword(s):  
Public Opinion ◽  
Real Estate ◽  
Probit Regression ◽  
Capital Income ◽  
Estate Tax ◽  
The Real Estate ◽  
The Public ◽  
User Charges ◽  
Real Estate Tax ◽  
Model Support

This paper presents the results of surveys of both expert and public opinion regarding the introduction of a local real estate tax in Croatia. The methodology encompasses descriptive statistics and two models (the PLS-SEM and the binomial probit regression model). Support for the introduction of the real estate tax is stronger among the experts than the general public. However, the experts differ on professional lines, with faculty specialized in economics from departments of finance and accounting generally being against the tax. Both models reveal positive relationships between support for the tax and support for more equitable taxation. Meanwhile, the broader expert model is, besides profession and equity, also negatively influenced by attitudes in favour of lower taxation costs and positively influenced by attitudes in favour of property being an adequate indicator of ability to pay and of the need to tax capital income. The public opinion model is positively influenced by equity and negatively influenced by negative expectations about the abolition of existing real estate user charges and taxes. Work status is also relevant.

scholarly journals Labor or Capital Income Tax for Growth in an Aging Society

2020 ◽  
Vol 7 (5) ◽  
pp. 54
Author(s):  
Yusuke Miyake
Keyword(s):  
Growth Rates ◽  
Income Tax ◽  
Public Capital ◽  
Type Model ◽  
Labor Income ◽  
Private Capital ◽  
Capital Income ◽  
The Public ◽  
Aging Society ◽  
Argument Type

This study analyzes whether taxation of labor income or capital income maximizes growth rates, with labor-argument type model, in an aging society. There are certain conditions that maximize growth rates which are indicated by the share of public capital-public pensions. The results of this analysis taxing capital income is better in an economy where private capital is drastically larger than the public capital found in an aging society.

scholarly journals Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium

Econometrica ◽  
2020 ◽  
Vol 88 (2) ◽  
pp. 469-493 ◽  
Author(s):  
Dominik Sachs ◽  
Aleh Tsyvinski ◽  
Nicolas Werquin
Keyword(s):  
General Equilibrium ◽  
Optimal Taxation ◽  
Income Taxes ◽  
Tax Incidence ◽  
Labor Income ◽  
Tax Rates ◽  
Tax System ◽  
Marginal Tax Rates ◽  
Optimal Taxes

We study the incidence of nonlinear labor income taxes in an economy with a continuum of endogenous wages. We derive in closed form the effects of reforming nonlinearly an arbitrary tax system, by showing that this problem can be formalized as an integral equation. Our tax incidence formulas are valid both when the underlying assignment of skills to tasks is fixed or endogenous. We show qualitatively and quantitatively that contrary to conventional wisdom, if the tax system is initially suboptimal and progressive, the general‐equilibrium “trickle‐down” forces may raise the benefits of increasing the marginal tax rates on high incomes. We finally derive a parsimonious characterization of optimal taxes.

Is exit tax a good idea for the taxman?

2018 ◽  
Vol 45 (4) ◽  
pp. 810-828
Author(s):  
Darong Dai
Keyword(s):  
Capital Accumulation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Income Taxes ◽  
Sales Tax ◽  
Tax Revenue ◽  
Labor Income ◽  
Capital Income ◽  
Content Type ◽  
Lump Sum

Purpose The purpose of this paper is to study whether it is a rational choice for a tax authority to impose an exit tax on capitalists. Design/methodology/approach The tax authority chooses a lump-sum exit tax to maximize a weighted objective of expected tax revenue and expected tax horizon. The tax revene consists of capital income taxes and exit taxes. Capitalists are motivated by sustainable capital accumulation and hence maximize the terminal capital stock. Findings The author finds that the objective function of the tax authority is strictly increasing in the exit tax, which holds for extensions with sales tax, labor income tax or proportional exit tax, and hence equilibrium exit tax is equal to an exogenous upper bound. Originality/value To the author’s knowledge, no existing literature investigates this issue theoretically, and hence the current paper represents the first attempt. The author hopes this theoretical analysis can trigger related empirical studies.

scholarly journals Finances of the Nation: Net Income Tax Rates and the Changing Progressivity of the Cash Tax/Transfer System

2021 ◽  
Vol 69 (2) ◽  
pp. 575-593
Author(s):  
Tahsin Mehdi ◽  
Brian Murphy
Keyword(s):  
Income Tax ◽  
Cash Transfers ◽  
Income Taxes ◽  
Transfer System ◽  
Tax Rates ◽  
Lower Income ◽  
Net Income ◽  
Effective Tax Rates ◽  
Tax System ◽  
Over Time

In this article, using new data released in 2019, Tahsin Mehdi and Brian Murphy examine changes in the progressivity of the federal and provincial income tax system, in conjunction with changes in the progressivity of federal and provincial cash transfers since 1992, by examining effective tax rates. Many of the major components of the system of income taxes and cash transfers have become somewhat more progressive collectively over time. This has resulted in an improved net tax position for lower-income taxfilers as well as the top third of taxfilers. On the other hand, taxfilers in the middle quintile have experienced a drop in their net tax position since 1992.

ENTREPRENEURIAL LABOR AND CAPITAL TAXATION

2010 ◽  
Vol 15 (3) ◽  
pp. 326-335 ◽  
Author(s):  
Catarina Reis
Keyword(s):  
Income Taxes ◽  
Income Taxation ◽  
Labor Income ◽  
Capital Taxation ◽  
Capital Income ◽  
Capital Income Taxation ◽  
Optimal Tax ◽  
Long Run ◽  
Capital Tax ◽  
The Government

This paper considers a Ramsey model of linear taxation for an economy with capital and two kinds of labor. If the government cannot distinguish between the return from capital and the return from entrepreneurial labor, then there will be positive capital income taxation, even in the long run. This happens because the only way to tax entrepreneurial labor is by also taxing capital. Furthermore, under fairly general conditions, the optimal tax on observable labor income is higher than the capital tax, although both are strictly positive. Thus, even though both income taxes are positive, imposing uniform income taxation would lead to additional distortions in the economy.

scholarly journals A Road Map for Efficiently Taxing Heterogeneous Agents

2016 ◽  
Vol 8 (2) ◽  
pp. 182-214 ◽  
Author(s):  
Marios Karabarbounis
Keyword(s):  
Income Taxes ◽  
Labor Income ◽  
Cycle Model ◽  
Tax System ◽  
Road Map ◽  
Optimal Tax ◽  
Key Innovation ◽  
Labor Supply Elasticity ◽  
Household Assets ◽  
Tax Distortions

This paper characterizes optimal labor income taxes that depend on age, household assets, and filing status (one or two earners) within a life-cycle model with heterogeneous, two-member households. The key innovation is a labor supply elasticity that varies endogenously among households. I find that tax distortions should be hump shaped in age, decrease in household assets, and be lower for joint relative to single filers. Age and assets act as complements within the optimal tax policy. Overall, a tax system using all three tags can increase consumption up to 6.4 percent and welfare up to 1.5 percent. (JEL D14, D91, H21, H24, J22, J31)

scholarly journals Kapitalertragsbesteuerung und Kapitalkosten

2012 ◽  
Vol 13 (1-2) ◽  
pp. 52-81
Author(s):  
Dominik Rumpf ◽  
Wolfgang Wiegard
Keyword(s):  
Real Estate ◽  
Pension Plans ◽  
Private Pension ◽  
Income Taxation ◽  
Financial Capital ◽  
Capital Income ◽  
Tax System ◽  
Investment Opportunities ◽  
Estate Property ◽  
Business Income

AbstractIn Germany income from financial capital received by private persons is taxed at a reduced final withholding tax of about 25 percent whereas income from real estate property or business income is usually taxed at significantly higher rates up to 47 percent. Furthermore, there are special tax rules concerning returns from assurances and private pension plans. This article provides an overview of the current taxation of capital income in Germany by calculating costs of capital for the most common investment opportunities. While private pension plans and other assurances are considerably favoured by the tax system, equity-financed business investment is heavily discriminated against. The conclusions for real-estate taxation are ambiguous. This chaotic situation can be traced back to the coexistence of principally incompatible blueprints for capital income taxation.

scholarly journals Tax Policy and Inclusive Growth

2020 ◽  
Vol 20 (271) ◽  
Author(s):  
Khaled Abdel-Kader ◽  
Ruud A. Mooij
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Income Taxes ◽  
Theory And Practice ◽  
The Political ◽  
Inclusive Growth ◽  
Personal Income Tax ◽  
Capital Income ◽  
Consumption Taxes ◽  
Tax Design

This paper discusses the theory and practice of tax design to achieve an efficient and equitable outcome, i.e. in support of inclusive growth. It starts with a discussion of the key principles from tax theory to guide practical tax design. Then, it elaborates on more granular tax policy, discussing key choices in the structure of the personal income tax on labor and capital income, taxes on wealth, the corporate income tax, and consumption taxes. The paper concludes by highlighting the political economy considerations of the issues with concrete recommedtions as to how to implement tax reform.

scholarly journals The Inequality Effects of a Dual Income Tax System

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Peter J. Lambert ◽  
Thor O. Thoresen
Keyword(s):  
Income Tax ◽  
Sufficient Conditions ◽  
Labor Income ◽  
Capital Income ◽  
Tax System ◽  
Tax Rate ◽  
Dual Income Tax ◽  
Clear Cut ◽  
Dual Income ◽  
Tax Payers

Abstract A dual income tax system, combining progressive taxation of labor income with proportional taxation of income from capital, may or may not be unambiguously inequality reducing. Examples show that the degree of correlation between the distributions of wage and capital income, the degree of tax rate differentiation in the DIT, and reranking of tax-payers can be expected to complicate a clear-cut analysis. We trace out what can be said definitively, obtaining sufficient conditions for unambiguous inequality reduction in certain cases, and more generally identifying the nature of the implicit redistribution between labor and capital income components which is sufficient to ensure overall inequality reduction.

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