Taxing Dividends in a Dual Income Tax System: The Nordic Experience with the Income Splitting Rules

Alstadsæter, A., and E. Fjærli. 2009. “Neutral Taxation of Shareholder Income? Corporate Responses to an Announced Dividend Tax.” International Tax and Public Finance 16: 571–604. Alstadsæter A. Fjærli E. 2009 . “ Neutral Taxation of Shareholder Income? Corporate Responses to an Announced Dividend Tax .” International Tax and Public Finance 16 : 571 – 604 . Search in Google Scholar

Alstadsæter, A., and M. Jacob. 2012. Income Shifting in Sweden: An Empirical Evaluation of the 3:12 Rules. Ministry of Finance, Regeringskansliet. Alstadsæter A. Jacob 2012 . Income Shifting in Sweden: An Empirical Evaluation of the 3:12 Rules . Ministry of Finance , Regeringskansliet . Search in Google Scholar

Alstadsæter, A., M. Jacob, W. Kopczuk, and K. Telle. 2023. Accounting for Business Income in Measuring Top Income Shares: Integrated Accrual Approach Using Individual and Firm Data from Norway. Technical report, National Bureau of Economic Research. Alstadsæter A. Jacob M. Kopczuk W. Telle K. 2023 . Accounting for Business Income in Measuring Top Income Shares: Integrated Accrual Approach Using Individual and Firm Data from Norway. Technical report , National Bureau of Economic Research . Search in Google Scholar

Alstadsæter, A., M. Jacob, and R. Michaely. 2017. “Do Dividend Taxes Affect Corporate Investment?” Journal of Public Economics 151: 74–83. Alstadsæter A. Jacob M. Michaely R. 2017 . “ Do Dividend Taxes Affect Corporate Investment? ” Journal of Public Economics 151 : 74 – 83 . Search in Google Scholar

Alstadsæter, A., and M. Jacob. 2016. “Dividend Taxes and Income Shifting.” The Scandinavian Journal of Economics 118 (4): 693–717. Alstadsæter A. Jacob M. 2016 . “ Dividend Taxes and Income Shifting .” The Scandinavian Journal of Economics 118 ( 4 ): 693 – 717 . Search in Google Scholar

Bastani, S., and D. Waldenström. 2020. “How Should Capital Be Taxed?” Journal of Economic Surveys 34 (4): 812–846. Bastani S. Waldenström D. 2020 . “ How Should Capital Be Taxed? ” Journal of Economic Surveys 34 ( 4 ): 812 – 846 . Search in Google Scholar

Bettendorf, L., A. Lejour, and M. v. Riet. 2017. “Tax Bunching by Owners of Small Corporations.” De Economist 165 (4): 411–438. Bettendorf L. Lejour A. Riet M. v. 2017 . “ Tax Bunching by Owners of Small Corporations .” De Economist 165 ( 4 ): 411 – 438 . Search in Google Scholar

Bjerksund, P., and G. Schjelderup. 2021a. “Aksjonærmodellen og Fritaksmetoden: Et To-hodet Troll? (The Shareholder Model and the Exemption Method: A Two-Headed Troll?).” Samfunnsøkonomen (4): 53–63. Bjerksund P. Schjelderup G. 2021a . “ Aksjonærmodellen og Fritaksmetoden: Et To-hodet Troll? (The Shareholder Model and the Exemption Method: A Two-Headed Troll?) .” Samfunnsøkonomen ( 4 ): 53 – 63 . Search in Google Scholar

Bjerksund, P., and G. Schjelderup. 2021b. “Er den Norske Ak-sjonærbeskatningen Nøytral? (Is the Norwegian Shareholder Tax Neutral?).” Samfunnsøkonomen (4): 43–52. Bjerksund P. Schjelderup G. 2021b . “ Er den Norske Ak-sjonærbeskatningen Nøytral? (Is the Norwegian Shareholder Tax Neutral?) .” Samfunnsøkonomen ( 4 ): 43 – 52 . Search in Google Scholar

Blomquist, S., and H. Selin. 2010. “Hourly Wage Rate and Taxable Labor Income Responsiveness to Changes in Marginal Tax Rates.” Journal of Public Economics 94 (11–12): 878–889. Blomquist S. Selin H. 2010 . “ Hourly Wage Rate and Taxable Labor Income Responsiveness to Changes in Marginal Tax Rates .” Journal of Public Economics 94 ( 11–12 ): 878 – 889 . Search in Google Scholar

Boadway, R., and N. Bruce. 1992. “Problems with Integrating Corporate and Personal Income Taxes in an Open Economy.” Journal of Public Economics 48 (1): 39–66. Boadway R. Bruce N. 1992 . “ Problems with Integrating Corporate and Personal Income Taxes in an Open Economy .” Journal of Public Economics 48 ( 1 ): 39 – 66 . Search in Google Scholar

Christiansen, V., and M. Tuomala. 2008. “On Taxing Capital Income with Income Shifting.” International Tax and Public Finance 15: 527–545. Christiansen V. Tuomala M. 2008 . “ On Taxing Capital Income with Income Shifting .” International Tax and Public Finance 15 : 527 – 545 . Search in Google Scholar

Cnossen, S., and L. Bovenberg. 2001. “Fundamental Tax Reform in the Netherlands.” International Tax and Public Finance 8 (4): 471–484. Cnossen S. Bovenberg L. 2001 . “ Fundamental Tax Reform in the Netherlands .” International Tax and Public Finance 8 ( 4 ): 471 – 484 . Search in Google Scholar

Cnossen, S., and P. B. Sørensen. 2021. “Towards a True Dual Income Tax.” In Tax by Design for the Netherlands. Oxford University Press. Cnossen S. Sørensen P. B. 2021 . “ Towards a True Dual Income Tax .” In Tax by Design for the Netherlands . Oxford University Press . Search in Google Scholar

Edin, P.-O., I. Hansson, and S.-O. Lodin. 2005. Reformerad Ägarbeskattning: Effektivitet, Prevention, Legitimitet (Ownership Tax Reform: Efficiency, Prevention, Legitimacy). Swedish Ministry of Finance. Edin P.-O. Hansson I. Lodin S.-O. 2005 . Reformerad Ägarbeskattning: Effektivitet, Prevention, Legitimitet (Ownership Tax Reform: Efficiency, Prevention, Legitimacy) . Swedish Ministry of Finance . Search in Google Scholar

Hagen, K. P., and P. B. Sørensen. 1998. “Taxation of Income from Small Businesses: Taxation Principles and Tax Reforms in the Nordic Countries,” 28–71. London: Palgrave Macmillan UK. Hagen K. P. Sørensen P. B. 1998 . “ Taxation of Income from Small Businesses: Taxation Principles and Tax Reforms in the Nordic Countries ,” 28 – 71 . London : Palgrave Macmillan UK . Search in Google Scholar

Harju, J., and T. Matikka. 2016a. “Business Owners and Income-Shifting: Evidence from Finland.” Small Business Economics 46 (1): 115–136. Harju J. Matikka T. 2016a . “ Business Owners and Income-Shifting: Evidence from Finland .” Small Business Economics 46 ( 1 ): 115 – 136 . Search in Google Scholar

Harju, J., and T. Matikka. 2016b. “The Elasticity of Taxable Income and Income-Shifting: What Is ‘Real’ and What Is Not?” International Tax and Public Finance 23 (4): 640–669. Harju J. Matikka T. 2016b . “ The Elasticity of Taxable Income and Income-Shifting: What Is ‘Real’ and What Is Not? ” International Tax and Public Finance 23 ( 4 ): 640 – 669 . Search in Google Scholar

Henrekson, M., and T. Sanandaji. 2011. “Entrepreneurship and the Theory of Taxation.” Small Business Economics 37: 167–185. Henrekson M. Sanandaji T. 2011 . “ Entrepreneurship and the Theory of Taxation .” Small Business Economics 37 : 167 – 185 . Search in Google Scholar

Jacob, M. 2021. “Dividend Taxes, Employment, and Firm Productivity.” Journal of Corporate Finance 69: Article 102040. Jacob M. 2021 . “ Dividend Taxes, Employment, and Firm Productivity .” Journal of Corporate Finance 69 : Article 102040. Search in Google Scholar

Jakobsen, K., K. Jakobsen, H. Kleven, and G. Zucman. 2019. “Wealth Taxation and Wealth Accumulation: Theory and Evidence from Denmark.” The Quarterly Journal of Economics 135 (1): 329–388. Jakobsen K. Jakobsen K. Kleven H. Zucman G. 2019 . “ Wealth Taxation and Wealth Accumulation: Theory and Evidence from Denmark .” The Quarterly Journal of Economics 135 ( 1 ): 329 – 388 . Search in Google Scholar

Kanniainen, V., S. Kari, and J. Ylä-Liedenpohja. 2007. “Nordic Dual Income taxation of Entrepreneurs” International Tax and Public Finance 14, 407–426. Kanniainen V. Kari S. Ylä-Liedenpohja J. 2007 . “ Nordic Dual Income taxation of Entrepreneurs ” International Tax and Public Finance 14 , 407 – 426 . Search in Google Scholar

Kari, S., and O. Ropponen. 2016. “A Note on the Effects of Income-Splitting under Dual Income Tax.” Working Papers 81, VATT Institute for Economic Research. Kari S. Ropponen O. 2016 . “ A Note on the Effects of Income-Splitting under Dual Income Tax .” Working Papers 81 , VATT Institute for Economic Research . Search in Google Scholar

Kleven, H., C. T. Kreiner, K. Larsen, and J. Egholt Søgaard. 2023. “Micro vs Macro Labor Supply Elasticities: The Role of Dynamic Returns to Effort.” Working Paper 31549, National Bureau of Economic Research. Kleven H. Kreiner C. T. Larsen K. Egholt Søgaard J. 2023 . “ Micro vs Macro Labor Supply Elasticities: The Role of Dynamic Returns to Effort .” Working Paper 31549 , National Bureau of Economic Research . Search in Google Scholar

Kleven, H. J., and E. A. Schultz. 2014. “Estimating Taxable Income Responses Using Danish Tax Reforms.” American Economic Journal: Economic Policy 6 (4): 271–301. Kleven H. J. Schultz E. A. 2014 . “ Estimating Taxable Income Responses Using Danish Tax Reforms .” American Economic Journal: Economic Policy 6 ( 4 ): 271 – 301 . Search in Google Scholar

Koivisto, A. 2024. “Tax Planning and Investment Responses to Dividend Taxation.” International Tax and Public Finance. Forthcoming. Koivisto A. 2024 . “ Tax Planning and Investment Responses to Dividend Taxation .” International Tax and Public Finance . Forthcoming. Search in Google Scholar

Kotakorpi, K., and T. Matikka. 2017. “Revenue-Maximizing Top Earned Income Tax Rate in the Presence of Income-Shifting.” Nordic Tax Journal 2017 (1). Kotakorpi K. Matikka T. 2017 . “ Revenue-Maximizing Top Earned Income Tax Rate in the Presence of Income-Shifting .” Nordic Tax Journal 2017 ( 1 ). Search in Google Scholar

Lindhe, T., J. Södersten, and A. Öberg. 2002. “Economic Effects of Taxing Closed Corporations under a Dual Income Tax.” ifo Studien 48 (4): 575–609. Lindhe T. Södersten J. Öberg A. 2002 . “ Economic Effects of Taxing Closed Corporations under a Dual Income Tax .” ifo Studien 48 ( 4 ): 575 – 609 . Search in Google Scholar

Lindhe, T., J. Södersten, and A. Öberg. 2004. “Economic Effects of Taxing Different Organizational Forms under the Nordic Dual Income Tax.” International Tax and Public Finance 11: 469–485. Lindhe T. Södersten J. Öberg A. 2004 . “ Economic Effects of Taxing Different Organizational Forms under the Nordic Dual Income Tax .” International Tax and Public Finance 11 : 469 – 485 . Search in Google Scholar

Matheson, T., and P. Kollbeins. 2012. “Allocating Business Income between Capital and Labor under a Dual Income Tax: The Case of Iceland.” Technical report, Working Paper No. 2012/263. Matheson T. Kollbeins P. 2012 . “ Allocating Business Income between Capital and Labor under a Dual Income Tax: The Case of Iceland.” Technical report , Working Paper No. 2012/263 . Search in Google Scholar

Matikka, T. 2018. “Elasticity of Taxable Income: Evidence from Changes in Municipal Income Tax Rates in Finland.” The Scandinavian Journal of Economics 120 (3): 943–973. Matikka T. 2018 . “ Elasticity of Taxable Income: Evidence from Changes in Municipal Income Tax Rates in Finland .” The Scandinavian Journal of Economics 120 ( 3 ): 943 – 973 . Search in Google Scholar

Miao, D., H. Selin, and M. Söderström. 2024. “Earnings Responses to Even Higher Taxes.” The Economic Journal. Forthcoming. Miao D. Selin H. Söderström M. 2024 . “ Earnings Responses to Even Higher Taxes .” The Economic Journal . Forthcoming. Search in Google Scholar

Mirrlees, J. A. 1971. “An Exploration in the Theory of Optimum Income Taxation.” The Review of Economic Studies 38 (2): 175–208. Mirrlees J. A. 1971 . “ An Exploration in the Theory of Optimum Income Taxation .” The Review of Economic Studies 38 ( 2 ): 175 – 208 . Search in Google Scholar

Pirttilä, J., and H. Selin. 2011. “Income Shifting within a Dual Income Tax System: Evidence from the Finnish Tax Reform of 1993.” The Scandinavian Journal of Economics 113 (1): 120–144. Pirttilä J. Selin H. 2011 . “ Income Shifting within a Dual Income Tax System: Evidence from the Finnish Tax Reform of 1993 .” The Scandinavian Journal of Economics 113 ( 1 ): 120 – 144 . Search in Google Scholar

Saez, E., and S. Stantcheva. 2018. “A Simpler Theory of Optimal Capital Taxation.” Journal of Public Economics 162: 120–142. Saez E. Stantcheva S. 2018 . “ A Simpler Theory of Optimal Capital Taxation .” Journal of Public Economics 162 : 120 – 142 . Search in Google Scholar

Selin, H. 2021. 3:12-Reglernas Roll i Skattesystemet: Igår, Idag och i Framtiden (The Swedish Dual Income Tax System and the Splitting Rules: Yesterday, Today, and in the Future). SNS Förlag. Selin H. 2021 . 3:12-Reglernas Roll i Skattesystemet: Igår, Idag och i Framtiden (The Swedish Dual Income Tax System and the Splitting Rules: Yesterday, Today, and in the Future) . SNS Förlag . Search in Google Scholar

Selin, H., and L. Simula. 2020. “Income Shifting as Income Creation?” Journal of Public Economics 182: Article 104081. Selin H. Simula L. 2020 . “ Income Shifting as Income Creation? ” Journal of Public Economics 182 : Article 104081. Search in Google Scholar

Showalter, M. H., and N. K. Thurston. 1997. “Taxes and Labor Supply of High-Income Physicians.” Journal of Public Economics 66 (1): 73–97. Showalter M. H. Thurston N. K. 1997 . “ Taxes and Labor Supply of High-Income Physicians .” Journal of Public Economics 66 ( 1 ): 73 – 97 . Search in Google Scholar

Slemrod, J., and W. Kopczuk. 2002. “The Optimal Elasticity of Taxable Income.” Journal of Public Economics 84 (1): 91–112. Slemrod J. Kopczuk W. 2002 . “ The Optimal Elasticity of Taxable Income .” Journal of Public Economics 84 ( 1 ): 91 – 112 . Search in Google Scholar

Södersten, J. 2020. “Why the Norwegian Shareholder Income Tax Is Neutral.” International Tax and Public Finance 27 (1): 32–37. Södersten J. 2020 . “ Why the Norwegian Shareholder Income Tax Is Neutral .” International Tax and Public Finance 27 ( 1 ): 32 – 37 . Search in Google Scholar

Sørensen, P. B. 1994. “From the Global Income Tax to the Dual Income Tax: Recent Tax Reforms in the Nordic Countries.” International Tax and Public Finance 1 (1): 57–79. Sørensen P. B. 1994 . “ From the Global Income Tax to the Dual Income Tax: Recent Tax Reforms in the Nordic Countries .” International Tax and Public Finance 1 ( 1 ): 57 – 79 . Search in Google Scholar

Sørensen, P. B. 2005. “Neutral Taxation of Shareholder Income.” International Tax and Public Finance 12: 777–801. Sørensen P. B. 2005 . “ Neutral Taxation of Shareholder Income .” International Tax and Public Finance 12 : 777 – 801 . Search in Google Scholar

Sørensen, P. B. 2010. Swedish Tax Policy: Recent Trends and Future Challenges. Expertgruppen för Studier i Offentlig Ekonomi. Sørensen P. B. 2010 . Swedish Tax Policy: Recent Trends and Future Challenges . Expertgruppen för Studier i Offentlig Ekonomi . Search in Google Scholar

SOU 2016:75. Översyn av Skattereglerna för Delägare i Få-mansföretag: Betänkande av Utredningen om 3:12-Reglerna. Regeringskansliet. SOU 2016:75 . Översyn av Skattereglerna för Delägare i Få-mansföretag: Betänkande av Utredningen om 3:12-Reglerna . Regeringskansliet . Search in Google Scholar

SOU 2024:36. Förenkla och Förbättra! Betänkande av Kommit-tén om Förenklad Beskattning av Ägare till Fåmansföretag. Regeringskansliet. SOU 2024:36 . Förenkla och Förbättra! Betänkande av Kommit-tén om Förenklad Beskattning av Ägare till Fåmansföretag . Regeringskansliet . Search in Google Scholar

Stenkula, M., and N. Wykman. 2022. “The Taxation of Closely Held Firms: The Achilles Heel of the Dual Income Tax System Reconsidered.” IFN Working Paper 1434. Stenkula M. Wykman N. 2022 . “ The Taxation of Closely Held Firms: The Achilles Heel of the Dual Income Tax System Reconsidered .” IFN Working Paper 1434 . Search in Google Scholar

Thoresen, T. O., and A. Alstadsæter. 2010. “Shifts in Organizational Form under a Dual Income Tax System.” FinanzArchiv/Public Finance Analysis: 384–418. Thoresen T. O. Alstadsæter A. 2010 . “ Shifts in Organizational Form under a Dual Income Tax System .” FinanzArchiv/Public Finance Analysis : 384 – 418 . Search in Google Scholar

Thoresen, T. O., and T. E. Vattø. 2015. “Validation of the Discrete Choice Labor Supply Model by Methods of the New Tax Responsiveness Literature.” Labour Economics 37: 38–53. Thoresen T. O. Vattø T. E. 2015 . “ Validation of the Discrete Choice Labor Supply Model by Methods of the New Tax Responsiveness Literature .” Labour Economics 37 : 38 – 53 . Search in Google Scholar

Yagan, D. 2015. “Capital Tax Reform and the Real Economy: The Effects of the 2003 Dividend Tax Cut.” American Economic Review 105 (12): 3531–63. Yagan D. 2015 . “ Capital Tax Reform and the Real Economy: The Effects of the 2003 Dividend Tax Cut .” American Economic Review 105 ( 12 ): 3531 – 63 . Search in Google Scholar