The article examines how people's income changes in response to tax rate adjustments in Sweden from 1991 to 2002. By analyzing a large group of taxpayers, the researchers found that reducing the top tax rate by five percentage points had little impact on tax revenues and could even lead to a surplus. They discovered that in the long run, income tends to increase by 20-30% for every 1% decrease in the tax rate. Short-term effects were less certain but generally smaller.