"How Capital Should be Taxed"
To highlight the redistributive role of capital taxation, Waldenström documented robust correlations between labour income, wealth and capital income. Furthermore, he presented new evidence on the wealth holdings of the wealthiest. Distortionary effects of capital taxation were analysed and critical issues in its practical implementation were discussed.
His overall conclusion is that there are good reasons to tax capital and that Nordic 'dual' income taxation could be a constructive way to strike a balance between an optimal and administratively feasible tax system.
In her commentary Margit Schratzenstaller emphasised that capital have an important role to play in a balanced and equitable tax system. To improve their enforceability, international cooperation needs to be strengthened further.
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