… In this paper we reconcile and extend previous results on the collectively optimal taxation
of international investment income. The ‘‘weighted average’’ rule of Horst (1980), for example, …

… how taxes should be designed to achieve efficiency. In particular, I study optimal taxes on
different types of capital income. … between three types of capital income: 1. Outside saving: …

… capital income, which implications follow for tax policy? Should … income more heavily or
just the opposite, more lightly? The question is treated in this paper as one of optimal taxation. …

… We find positive and substantial optimal taxes on capital income … , optimal tax rates on capital
income are on average around 14 percent, while the optimal top tax rate at the 99th income …

… in the literature on optimal taxation. It serves as a benchmark: knowing when not to tax
capital income, gives us a starting point to study when and how we should tax capital income. …

We examine a prominent justification for capital income taxation: goods preferred by … taxed.
In an environment where commodity taxes are allowed to be nonlinear functions of income …

… , I show that if purchasers of capital are permitted to deduct capital expenditures from taxable
capital income, then a constant tax rate on capital income is non-distortionary. Importantly, …

… traditionally focussed either on optimal taxation of savings in … However, in more realistic
and practical settings, taxation is a … capital income taxes are optimal if labor income is taxed at …

… and wage income should be taxed to finance subsidies to capital goods produced by …
For example, in their survey of optimal taxation, Alan J. Auerbach and James R. Hines, Jr. …

… to the data to simulate optimal taxes, which we do … for optimal linear and nonlinear capital
income taxation that can be expressed in terms of the elasticity of the supply of capital income …