Koskela, Erkki; Schöb, Ronnie - In: Oxford Economic Papers 57 (2005) 4, pp. 717-731
According to the existing literature, capital taxes should not be imposed in the presence of optimal profit taxation in … taxation, it is optimal for such economies to tax capital if the revenue share of capital in the unionized sector is lower than … in the competitive sector. This is because taxing capital income reduces employment and lowers the outside option of …