Jacobs, Bas; Bovenberg, Ary Lans - 2005
This paper analyzes optimal linear taxes on capital and labor incomes in a life-cyclemodel of human capital investment … the labor tax on human capital accumulation.The optimal marginal tax rate on capital income is lower than that on labor … incomeif savings are elastic compared to investment in human capital; substitution betweeninputs in human capital formation is …