Jacobs, Bas; Bovenberg, Ary Lans - 2005
, financial savings, and labor supply with heteroge-nous individuals. A dual income tax with a positive marginal tax rate on not … onlylabor income but also capital income is optimal. The positive tax on capital incomeserves to alleviate the distortions of … the labor tax on human capital accumulation.The optimal marginal tax rate on capital income is lower than that on labor …