Redistributive Capital Taxation Revisited

@article{Kina2020RedistributiveCT,
  title={Redistributive Capital Taxation Revisited},
  author={Amilis Kina and Ctirad Slav́ık and Hakkı Yazıcı},
  journal={Labor: Human Capital eJournal},
  year={2020}
}
This paper shows that capital-skill complementarity provides a quantitatively significant rationale to tax capital for redistributive governments. The optimal capital income tax rate is 60%, which is significantly higher than the optimal rate of 48% in an identically calibrated model without capital-skill complementarity. The skill premium falls from 1.9 to 1.67 along the transition following the optimal reform in the capital-skill complementarity model, implying substantial indirect… 
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