Nordic Dual Income Taxation of Entrepreneurs

Vesa Kanniainen, Seppo Kari () and Jouko Ylä-Liedenpohja

No 1623, CESifo Working Paper Series from CESifo

Abstract: The paper shows how entrepreneurial taxes interact with the career choice of individuals, the quality of entrepreneurs, and their effort and investments. 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. That is why the neutrality results of dividend taxation from mature company theory do not carry over to start-up enterprises. The Nordic dual model encourages (discourages) the establishment of new enterprises by entrepreneurs who anticipate high (low) profitability.

Keywords: dual income taxation; enterprise taxes (search for similar items in EconPapers)
JEL-codes: H25 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-ent, nep-pbe, nep-pub and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Nordic dual income taxation of entrepreneurs (2007)
Working Paper: Nordic Dual Income Taxation of Entrepreneurs (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1623

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