IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-137-47815-3_3.html
   My bibliography  Save this book chapter

Swedish Capital Income Taxation (1862–2013)

In: Swedish Taxation

Author

Listed:
  • Gunnar Rietz
  • Dan Johansson
  • Mikael Stenkula

Abstract

Taxation affects many economic decisions, including those related to labor supply, household savings, corporate investment, and entrepreneurial activity. In this chapter, we study the incentives provided by capital income taxation to invest. Capital income taxation affects the incentives to invest through its effect on the cost of capital, that is, the minimum rate of return that an investment must yield before taxes to provide the saver with the same net of tax return that (s)he would receive from lending at the market interest rate. Investment projects worth pursuing require that the profitability is higher than the cost of capital. The total effect of capital income taxation depends on the system of corporate taxation, personal income taxation, and wealth taxation, in addition to the interaction between these taxes and inflation.

Suggested Citation

  • Gunnar Rietz & Dan Johansson & Mikael Stenkula, 2015. "Swedish Capital Income Taxation (1862–2013)," Palgrave Macmillan Books, in: Magnus Henrekson & Mikael Stenkula (ed.), Swedish Taxation, chapter 0, pages 123-178, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-47815-3_3
    DOI: 10.1057/9781137478153_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Almas Heshmati & Dan Johansson & Carl Magnus Bjuggren, 2010. "Effective Corporate Tax Rates and the Size Distribution of Firms," Journal of Industry, Competition and Trade, Springer, vol. 10(3), pages 297-317, September.
    2. Lars Jonung, 1984. "Swedish Experience under the Classical Gold Standard, 1873-1914," NBER Chapters, in: A Retrospective on the Classical Gold Standard, 1821-1931, pages 361-404, National Bureau of Economic Research, Inc.
    3. Mervyn A. King & Don Fullerton, 1984. "The United Kingdom," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 31-86, National Bureau of Economic Research, Inc.
    4. Henrekson, Magnus & Johansson, Dan, 2008. "Competencies and Institutions Fostering High-growth Firms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(1), pages 1-80, November.
    5. Erik Norrman & Charles E. McLure Jr., 1997. "Tax Policy in Sweden," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 109-154, National Bureau of Economic Research, Inc.
    6. Mervyn A. King & Don Fullerton, 1984. "Introduction to "The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany"," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 1-6, National Bureau of Economic Research, Inc.
    7. Davis, Steven J & Henrekson, Magnus, 1999. "Explaining National Differences in the Size and Industry Distribution of Employment," Small Business Economics, Springer, vol. 12(1), pages 59-83, February.
    8. Henrekson, Magnus & Johansson, Dan, 1999. "Institutional Effects on the Evolution of the Size Distribution of Firms," Small Business Economics, Springer, vol. 12(1), pages 11-23, February.
    9. repec:bla:scandj:v:91:y:1989:i:4:p:671-87 is not listed on IDEAS
    10. Mervyn A. King & Don Fullerton, 1984. "The United States," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 193-267, National Bureau of Economic Research, Inc.
    11. Michael Devereux & Rachel Griffith, 1998. "The taxation of discrete investment choices," IFS Working Papers W98/16, Institute for Fiscal Studies.
    12. Mikael Stenkula & Dan Johansson & Gunnar Du Rietz, 2014. "Marginal taxation on labour income in Sweden from 1862 to 2010," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 62(2), pages 163-187, June.
    13. Mervyn A. King & Don Fullerton, 1984. "The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany," NBER Books, National Bureau of Economic Research, Inc, number king84-1, June.
    14. Kanniainen, Vesa & Sodersten, Jan, 1994. "Costs of monitoring and corporate taxation," Journal of Public Economics, Elsevier, vol. 55(2), pages 307-321, October.
    15. Kristina Artsberg, 1996. "The link between commercial accounting and tax accounting in sweden," European Accounting Review, Taylor & Francis Journals, vol. 5(1), pages 795-814.
    16. Richard B. Freeman & Robert Topel & Birgitta Swedenborg, 1997. "The Welfare State in Transition: Reforming the Swedish Model," NBER Books, National Bureau of Economic Research, Inc, number free97-1, June.
    17. Ulf Jakobsson & Magnus Henrekson, 2001. "Where Schumpeter was nearly right - the Swedish model and Capitalism, Socialism and Democracy," Journal of Evolutionary Economics, Springer, vol. 11(3), pages 331-358.
    18. Freeman, Richard B. & Topel, Robert H. & Swedenborg, Birgitta (ed.), 1997. "The Welfare State in Transition," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261782, July.
    19. Mikael Stenkula, 2015. "Taxation of Real Estate in Sweden (1862–2013)," Palgrave Macmillan Books, in: Magnus Henrekson & Mikael Stenkula (ed.), Swedish Taxation, chapter 0, pages 303-327, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    2. Henrekson, Magnus & Stenkula, Mikael, 2015. "Swedish Taxation since 1862: An Overview," Working Paper Series 1052, Research Institute of Industrial Economics, revised 10 Sep 2015.
    3. Johansson, Dan & Stenkula, Mikael & Wykman, Niklas, 2018. "The Taxation of Private Foundations in Sweden 1862–2018," Working Paper Series 1245, Research Institute of Industrial Economics, revised 02 Oct 2019.
    4. Niklas Elert & Magnus Henrekson, 2019. "The collaborative innovation bloc: A new mission for Austrian economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(4), pages 295-320, December.
    5. Niklas Elert & Dan Johansson & Mikael Stenkula & Niklas Wykman, 2023. "The evolution of owner-entrepreneurs’ taxation: five tax regimes over a 160-year period," Journal of Evolutionary Economics, Springer, vol. 33(2), pages 517-540, April.
    6. Henrekson Magnus, 2017. "Taxation of Swedish Firm Owners: The Great Reversal from the 1970s to the 2010s," Nordic Tax Journal, Sciendo, vol. 2017(1), pages 26-46, January.
    7. Johansson, Dan & Stenkula, Mikael & Wykman, Niklas, 2018. "The Rise of Private Foundations as Owners of Swedish Industry: The Role of Tax Incentives 1862–2018," Working Papers 2018:10, Örebro University, School of Business.
    8. Mikael Stenkula, 2015. "Taxation of Real Estate in Sweden (1862–2013)," Palgrave Macmillan Books, in: Magnus Henrekson & Mikael Stenkula (ed.), Swedish Taxation, chapter 0, pages 303-327, Palgrave Macmillan.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Du Rietz, Gunnar & Johansson, Dan & Stenkula, Mikael, 2014. "A 150-year Perspective on Swedish Capital Income Taxation," Working Papers 2014:2, Örebro University, School of Business.
    2. Niklas Elert & Dan Johansson & Mikael Stenkula & Niklas Wykman, 2023. "The evolution of owner-entrepreneurs’ taxation: five tax regimes over a 160-year period," Journal of Evolutionary Economics, Springer, vol. 33(2), pages 517-540, April.
    3. Johansson, Dan & Stenkula, Mikael & Wykman, Niklas, 2018. "The Taxation of Private Foundations in Sweden 1862–2018," Working Paper Series 1245, Research Institute of Industrial Economics, revised 02 Oct 2019.
    4. Johansson, Dan & Stenkula, Mikael & Wykman, Niklas, 2018. "The Rise of Private Foundations as Owners of Swedish Industry: The Role of Tax Incentives 1862–2018," Working Papers 2018:10, Örebro University, School of Business.
    5. Henrekson Magnus, 2017. "Taxation of Swedish Firm Owners: The Great Reversal from the 1970s to the 2010s," Nordic Tax Journal, Sciendo, vol. 2017(1), pages 26-46, January.
    6. Henrekson, Magnus & Jakobsson, Ulf, 2003. "The Swedish Model of Corporate Ownership and Control in Transition," SSE/EFI Working Paper Series in Economics and Finance 521, Stockholm School of Economics, revised 15 Apr 2003.
    7. Pontus Braunerhjelm & Magnus Henrekson, 2016. "An Innovation Policy Framework: Bridging the Gap Between Industrial Dynamics and Growth," International Studies in Entrepreneurship, in: David B. Audretsch & Albert N. Link (ed.), Essays in Public Sector Entrepreneurship, edition 1, chapter 0, pages 95-130, Springer.
    8. Heyman, Fredrik & Norbäck, Pehr-Johan & Persson, Lars & Andersson, Fredrik, 2019. "Has the Swedish business sector become more entrepreneurial than the US business sector?," Research Policy, Elsevier, vol. 48(7), pages 1809-1822.
    9. Magnus Henrekson & Dan Johansson & Mikael Stenkula, 2020. "The rise and decline of industrial foundations as controlling owners of Swedish listed firms: the role of tax incentives," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 68(2), pages 170-191, May.
    10. Henrekson, Magnus & Stenkula, Mikael, 2015. "Swedish Taxation since 1862: An Overview," Working Paper Series 1052, Research Institute of Industrial Economics, revised 10 Sep 2015.
    11. Stenkula Mikael, 2014. "Swedish Taxation in a 150-year Perspective," Nordic Tax Journal, Sciendo, vol. 2014(2), pages 10-42, November.
    12. Steven J. Davis & Magnus Henrekson, 2010. "Economic Performance and Market Work Activity in Sweden After the Crisis of the Early 1990s," NBER Chapters, in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 225-252, National Bureau of Economic Research, Inc.
    13. Gunnar Rietz & Magnus Henrekson, 2015. "Swedish Wealth Taxation (1911–2007)," Palgrave Macmillan Books, in: Magnus Henrekson & Mikael Stenkula (ed.), Swedish Taxation, chapter 0, pages 267-302, Palgrave Macmillan.
    14. Magnus Henrekson & Jesper Roine, 2007. "Promoting Entrepreneurship in the Welfare State," Chapters, in: David B. Audretsch & Isabel Grilo & A. Roy Thurik (ed.), Handbook of Research on Entrepreneurship Policy, chapter 5, Edward Elgar Publishing.
    15. Ulf Jakobsson & Magnus Henrekson, 2001. "Where Schumpeter was nearly right - the Swedish model and Capitalism, Socialism and Democracy," Journal of Evolutionary Economics, Springer, vol. 11(3), pages 331-358.
    16. Magnus Henrekson, 2005. "Entrepreneurship: a weak link in the welfare state?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 437-467, June.
    17. Niklas Elert & Magnus Henrekson, 2019. "The collaborative innovation bloc: A new mission for Austrian economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(4), pages 295-320, December.
    18. Henrekson, Magnus & Rosenberg, Nathan, 2000. "Incentives for Academic Entrepreneurship and Economic Performance: Sweden and the United States," SSE/EFI Working Paper Series in Economics and Finance 362, Stockholm School of Economics.
    19. Henrekson, Magnus & Jakobsson, Ulf, 2001. "The Transformation of Ownership Policy and Structure in Sweden: Convergence towards the Anglo-Saxon Model?," SSE/EFI Working Paper Series in Economics and Finance 469, Stockholm School of Economics, revised 19 Sep 2002.
    20. Henrekson, Magnus & Rosenberg, Nathan, 2001. "Designing Efficient Institutions for Science-Based Entrepreneurship: Lessons from the US and Sweden," The Journal of Technology Transfer, Springer, vol. 26(3), pages 207-231, June.

    More about this item

    Keywords

    Capital Gain; Share Issue; Capital Income Taxation; Depreciation Allowance;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-137-47815-3_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.