Guvenen, Fatih; Kambourov, Gueorgui; Kuruşçu, Burhanettin - 2022 - This draft: December, 2022
implications for both efficiency and inequality. Under capital income taxation, entrepreneurs who are more productive and therefore … significantly higher average welfare. Turning to optimal taxation, the optimal wealth tax (OWT) is positive and yields large welfare …How does wealth taxation differ from capital income taxation? When the return on investment is equal across individuals …