April 1, 1998

Taxation of capital income in the 21st century

At the end of 1997, the Dutch government published a report on taxation in the 21st century.

This report contains proposals to replace both the wealth tax and income taxation of capital income on the household level by a levy on the imputed return on househould wealth. This paper explores how the proposals impact economic decisions, tax arbitrage, and tax revenues.

Authors

Lans Bovenberg
Sytze de Boer

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