1. A of this figure presents the empirical distribution of taxable (earned) income around the threshold at which an additional 20 percent income tax applies. Each point represents number of observations in a SEK 1,000 bin. The excess mass estimate compares the actual distribution around the state tax threshold to a 5th-degree polynomial fitted to the empirical distribution excluding bins within the range of;Bunching around the Major Kink in the Tax Schedule Using 2005 Income Panel A: Bunching around the Major Kink Panel B: Testing for Discontinuity around the Major Kink Notes: Panel