Nordic dual income taxation of entrepreneurs
Seppo Kari () and
Jouko Ylä-Liedenpohja ()
International Tax and Public Finance, 2007, vol. 14, issue 4, 407-426
The paper shows how entrepreneurial taxes interact with the career choice of individuals, the quality of entrepreneurs, and their investment behavior. It is particularly relevant to differentiate the early effects on start-up enterprises with substantial uncertainty from the tax effects on mature firms where the uncertainty is resolved. Conditions are derived for the Nordic dual income tax to be neutral and they are found to be stringent. Profit expectations matter. The Nordic dual encourages (discourages) the establishment of new enterprises by entrepreneurs who anticipate high (low) profitability. Copyright Springer Science+Business Media, LLC 2007
Keywords: Dual income taxation; Enterprise taxes; H25 (search for similar items in EconPapers)
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Working Paper: Nordic Dual Income Taxation of Entrepreneurs (2007)
Working Paper: Nordic Dual Income Taxation of Entrepreneurs (2005)
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