Sustainability of fiscal policies is one of the major issues in macroeconomics. Recently, in the United States, both Congress and Administration have proposed budgets designed to reduce the deficit and reach a zero debt target by the years 2002 and 2015, respectively. At the same time, European...

Within a framework of optimal taxation a la Mirrlees, we add a new heterogeneity between the individuals who differ not only on their marginal productivity, but also on their initial endowment in a good which is interpreted as an aggregate consumption. We consider other goods in the economy...