Gerritsen, Aart; Jacobs, Bas; Rusu, Alexandra V.; … - 2020
optimal non-linear taxes on labor and capital income in the presence of such return heterogeneity. We allow for two distinct … positive tax on capital income is part of a Pareto-efficient dual income tax structure. We write optimal tax rates on capital … simulations for empirically plausible return heterogeneity suggest that optimal marginal tax rates on capital income are positive …