, when a benevolent government chooses a distorting income tax rate to finance public production services by taking into …

benevolent government, which cares equally about its citizens, to tax capital heavily and to subsidise labour; (ii) a Pareto …

spending bill in a neoclassical growth model. We add to the literature by considering a more detailed tax structure, different … taxes and below one for corporate taxes. We also show that except for the consumption tax, the size of the multipliers …