The Ramsey optimal taxation theory implies that the tax rate on capital income should be zero in the long run. This …

The theory of optimal taxation has often been criticized for being of little practical policy relevance, due to a lack … of robust theoretical results. This paper argues that recent advances in optimal tax theory has made that theory easier … theory may be derived in a simple, heuristic manner. …

Taxation theory rarely takes entrepreneurship into consideration. We discuss how this omission affects conclusions … entrepreneurship often omitted by standard capital taxation theory are incorporated into the analysis. This includes the lack of a well … cannot be readily divided into labor and capital income, in stark contrast to what is assumed in standard taxation theory …