IQBAL, KAZI; TURNOVSKY, STEPHEN J. - In: Journal of Public Economic Theory 10 (2008) 1, pp. 27-53
This paper studies optimal capital and labor income taxes when the benefits of public goods are age-dependent. Provided the government can impose a consumption tax, it can attain the first-best resource allocation. This involves the uniform taxation of the cohorts' labor income and a zero...