Is the dual income tax a real alternative to traditional income taxes?

Santiago Alvarez-Garcia, Juan Prieto-Rodriguez () and Juan Gabriel Rodriguez-Hernandez
Authors registered in the RePEc Author Service: Juan Gabriel Rodríguez

International Journal of Public Policy, 2006, vol. 1, issue 3, 320-332

Abstract: In the fiscal reforms undertaken throughout the last decade, the dual income tax system, based on a broadened concept of income and progressive tax rates, has been implanted in several countries as an alternative model to traditional tax systems. The dual tax is characterised by combining a progressive taxation on labour and transfer incomes with a proportional taxation on capital income. Moreover, the capital income tax rate is generally set at the same level as the existing corporate tax rate. In this paper, the most important characteristics of both tax systems are compared. The theoretical arguments that justify these reforms are examined and then the main characteristics of the current dual taxes in the Nordic countries and Holland are analysed. We conclude with some comments on the viability of extending this tax system to other countries.

Keywords: dual income taxes; fiscal competition; fiscal reform; linear taxes; fiscal policy; progressive taxation; labour income; transfer income; proportional taxation; capital income. (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=9807 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:ids:ijpubp:v:1:y:2006:i:3:p:320-332

Access Statistics for this article

More articles in International Journal of Public Policy from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().