BUS360 Taxes, Inequality, and Sustainability

Taxes and inequality are central topics in the society and for public policy. This course serves as an introduction to these matters. It bridges macro and micro related topics, with emphasis on understanding the basic structure of the tax system, how taxes affect behaviour, and how this again is related to inequality and the Sustainable Development Goals.

A key lesson of the course is that sustainability covers all sides of society, not only the environment. The course makes students aware of how firms’ and individuals’ actions regarding taxes affects society and thus sustainability. Central to the course is both the SDG10 "Reduce inequality within and among countries" and the SDG16 "Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels".

Teaching is research based and policy relevant, both bringing the research frontier into the lecture hall and drawing on current newspaper articles and policy debates. The goal is for the students to get an understanding of the most important and up-to-date research and discussions on taxation and inequality, and to learn how to process, apply and communicate policy relevant research.

Knowledge

After completed course, the student should have knowledge on the topics covered by the course:

• Basic knowledge of the role of taxes in modern societies
• Redistribution and the equity-efficiency trade-off
• Behavioural responses to taxes: Real, avoidance, and evasion.
• Inequality - definitions, trends, and measurement challenges
• Challenges to taxing capital in a globalized world
• Tax havens and individuals' offshore wealth

Skills

After completed course, the student should be able to:

• Give an account of basic terminology of taxes, inequality, and sustainability
• Describe different inequality measures, and give an account for trends in inequality across time and countries as well as measurements challenges
• Describe the basic structure of the Norwegian tax system and relate it to other countries
• Give an account of various behavioral responses to taxes
• Describe the difference between tax evasion and tax avoidance, as well as give examples of both
• Give an account of challenges to taxing individual income and wealth in a globalized world
• Give an account of individuals' use of tax havens and how it affects tax revenue and inequality

General competence

After completed course, the student

• Masters basic tax and inequality terminology
• Is able to reflect on the interaction between taxes, inequality, and sustainability, as well as ethics related to taxation and tax avoidance
• Has a basic understanding of the Norwegian tax system and its challenges in a global economy
• Is trained in reading and processing an academic research paper