Several frictions might prevent (or make undesirable) the full taxation of savings. Due to international capital mobility, for instance, the government may not have perfect control over agent's saving and consumption decisions. We show in this paper that a restricted ability to tax savings has...

We study optimal bequest and capital taxation over the life-cycle in an OLG model. In this environment, we show that the efficient allocation can be implemented via age-dependent linear taxes/subsidies on capital income and bequests. First, as long as the degree of self-control problem is weakly...