EconPapers    
Economics at your fingertips  
 

The Achilles Heel of the Dual Income Tax: The Norwegian Case

Annette Alstadsæter ()

Finnish Economic Papers, 2007, vol. 20, issue 1, 5-22

Abstract: The dual income tax provides the self-employed individual with large incentives to participate in tax minimizing income shifting. The present paper analyses the income shifting incentives under the Norwegian split model when real capital investments are risky. It concludes that high-income self-employed individuals can incorporate and use the legal form of a widely held corporation as a tax shelter. In addition, real capital investments with a low risk profile are means to shift income from the labor income tax base to the capital income tax base for the highincome self-employed.

JEL-codes: H24 H25 H32 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.taloustieteellinenyhdistys.fi/images/st ... 007_alstadsaeter.pdf (application/pdf)

Related works:
Working Paper: The Achilles Heel of the Dual Income Tax. The Norwegian Case (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:20:y:2007:i:1:p:5-22

Access Statistics for this article

More articles in Finnish Economic Papers from Finnish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Editorial Secretary ().

 
Page updated 2018-06-11
Handle: RePEc:fep:journl:v:20:y:2007:i:1:p:5-22