The Nordic tax systems have recently undergone dramatic changes. Tax bases have been broadened, marginal tax rates have been cut, and the Nordic countries have abandoned the traditional income tax in favour of a 'dual' income tax combining progressive taxation of labour income with a low flat tax rate on capital income.

List of Tables - List of Illustrations - Preface; P.B.Sorensen - Acknowledgements - Notes on the Contributors - Recent Innovations in Nordic Tax Policy: From the Global Income Tax to the Dual Income Tax; P.B.Sorensen - Taxation of Income From Small Businesses: Taxation Principles and Tax Reforms in the Nordic Countries; K.P.Hagen & P.B.Sorensen - Corporate Tax Policy in the Nordic Countries; K.Andersson, V.Kanniainen, J.Sodersten & P.B.Sorensen - Financing the Nordic Welfare States in an Integrating Europe; K.P.Hagen, E.Norrman & P.B.Sorensen - Nordic Tax Policy Towards the Year 2000 and Beyond; P.B.Sorensen - Index

'The Nordic countries have been pacesetters in recent years in introducing imaginative changes in their tax systems. Peter Birch Sorensen has been one of the leading exponents of the theories behind these changes. His book is a very welcome addition to the literature on taxation'.- Vito Tanzi, Director, Fiscal Affairs Department, International Monetary Fund 'This lively and authoritative book on these fascinating tax reforms will serve as a guideline for all countries considering tax reforms to improve their competitive positions in the age of globalization'- Hans Werner Sinn, Professor of Economics and Public Finance, University of Munich 'Tax Policy in the Nordic Countries presents in a most excellent way the challenges faced by the Nordic tax systems and the practical solutions devised. The authors master the theoretical tax issues brilliantly and present them in a way highly readable for non-experts. The book will be influential as a source for enlightenment for those facing similar problems elsewhere'- Carsten Koch, Danish Minister of Taxation 'Recent developments have placed the Nordic countries at the forefront of theory-based innovation in tax policy. The book tells the story of these important developments in accessible and convincing terms; it contains insights for tax economists, analysts, policymakers and citizens in all developed economies'- Professor Robert Havemann, John Bascom Professor of Economics and Public Affairs, University of Wisconsin-Madison