Does parental wealth inequality impact next generation labor income inequality? And does a tax on parental wealth …. The estimated hypothetical wage distribution without the wealth tax is more unequal. Moreover, suggestive evidence …

We study aggregate, distributional, and welfare effects of a permanent reduction in the capital tax rate in a dynamic … equilibrium model with capital-skill complementarity. Such a tax reform leads to expansionary long-run aggregate effects, but is … distortionary labor or consumption tax rates have to increase to finance the capital tax rate cut. An extension to a model with …