Labour income taxes in Finland decreased considerably during the period 1996–2008. At the same time the Finnish economy grew rapidly. Nevertheless, there was another coincidental trend in this period: a rapid rise in inequality. This study aims to answer to what extent labour income tax...

Labour income taxes have decreased considerably in Finland in the period 1996-2008. At the same time the Finnish economy has grown rapidly. Nevertheless, there has been another coincident trend in this period: A rapid rise in inequality. This study aims to answer to what extent labour income tax...

This study analyzes the effects of tax reform that shifts tax burden from labor to consumption. In this context, I also deal with the issue of progressivity. Even though this kind of tax policy change has recently gained popularity, its positive effects are debatable while the offsetting effect...