risk neutral investors are sensitive with respect to capital tax risk and may react in a surprising manner to a newly …, high capital tax risk delays high-risk innovative investment projects. To reduce unintended consequences of uncertain tax …

We study the optimal taxation of risk-free and excess capital income with heterogeneous rates of return, alongside an … optimal nonlinear earnings tax. Households can hold three assets: one risk-free, one risky but diversifiable, and one a … private investment with idiosyncratic risk whose expected return differs among households. Contrary to expectations, the …