Conesa, Juan Carlos; Kitao, Sagiri; Krueger, Dirk - Center for Financial Studies - 2006
supply and capital accumulation decision. We find that the optimal capital income tax rate is not only positive, but is … significantly positive. The optimal (marginal and average) tax rate on capital is 36%, in conjunction with a progressive labor … rate is not only positive, but is significantly
positive. The optimal (marginal and average) tax rate on capital is 36 …