Roubini, Nouriel; Milesi-Ferretti, Gian Maria - 2022
analysis for the optimal taxation of factor incomes. It is shown that in general both capital and labor (human capital) taxes … are growth-reducing. In these cases, the optimal long-run tax on both capital and labor income is zero. The optimal … taxation plan consists of taxing both factors in the short run, and financing spending in the long run through accumulated …