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Can redistribution be a reason to tax capital?

Guerreiro, João Pedro Teodoro

What is the optimal tax on capital when agents differ in wealth and income profiles? In this thesis, I develop a model of agent heterogeneity to consider optimal Ramsey taxation of labor, capital and consumption. When the only source of heterogeneity is initial wealth, and abstracting from the initial confiscation, the optimal tax on capital is zero, provided some relevant elasticities are constant. When, inste...


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