. We characterize a class of environments in which the tax on labor goes to zero in the long run, while the tax on capital … income may be non-zero, reversing the standard prediction of the Ramsey tax literature. The zero labor tax is an optimal long … sovereign debt constraints. The front loading of labor taxes allows the economy to build a large (aggregate) debt position in …

We study the dynamic taxation of capital and labor in the Ramsey model under the assumption that taxes and public good …