英文摘要 |
The traditional theory argues that capital income taxation decreases capital returns. Therefore, such taxation results in lower savings and investments, and hence slower growth. To promote growth, Nordic countries have begun to implement the dual tax income system since the early 1990s. The dual income tax system levies a lower flat tax rate on capital income, while it maintains a progressive tax rate on labor income. We employ the difference in differences with matching model to examine if the dual income tax system is more beneficial to economic growth than other tax systems. Using data on 167 countries, the empirical results show that the effect of the dual income tax system on growth is statistically positive. Our empirical findings suggest that the dual income tax system enhances growth. |