Abstract
Accounting for the role of financial system and money holdings in an optimal nonlinear income tax model, we argue that capital income taxation is a non-redundant policy tool even if individual preferences are separable between leisure and other goods.
Original language | English (US) |
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Pages (from-to) | 86-89 |
Number of pages | 4 |
Journal | Economics Letters |
Volume | 147 |
DOIs | |
State | Published - Oct 1 2016 |
Keywords
- Capital income taxation
- Nonlinear labor income taxation
- Redistribution
ASJC Scopus subject areas
- Finance
- Economics and Econometrics