restore the optimal level of automation. If moving to optimal taxes is infeasible, more modest reforms can still increase … workers, reducing employment below its socially optimal level. We additionally show that reducing labor taxes or combining … lower capital taxes with automation taxes can increase employment much more than the uniform reductions in capital taxes …

We study the dynamic taxation of capital and labor in the Ramsey model under the assumption that taxes and public good … factor of the politician is equal to or greater than that of the citizens, the Chamley-Judd result of zero long-run taxes …