67772 doi 10.1257/aer.99.1.25 eng Conesa, Juan Carlos Universitat Autonoma de Barcelona. Department d'Economia i Història Econòmica Taxing Capital? Not a Bad Idea After All! Premi a l'excel·lència investigadora. 2010 We quantitatively characterize the optimal capital and labor income tax in an overlapping generations model with idiosyncratic, uninsurable income shocks and permanent productivity differences of households. The optimal capital income tax rate is significantly positive at 36 percent. The optimal progressive labor income tax is, roughly, a flat tax of 23 percent with a deduction of $7 ,200 (relative to average household income of $4 2,000). The high optimal capital income tax is mainly driven by the life-cycle structure of the model, whereas the optimal progressivity of the labor income tax is attributable to the insurance and redistribution role of the tax system. (JEL E13, H21, H24, H25) Article de fons PREI 2010 Progressive Taxes Capital Taxation Optimal Taxation info:eu-repo/semantics/article info:eu-repo/semantics/acceptedVersion Kitao, Sagiri University of Southern California. Marshall School of Business Krueger, Dirk University of Pennsylvania. Department of Economics Vol. 99 (1)(2009), p. 25-48 The American Economic Review‎ 0002-8282 Núm. 5929 (2006), p. 1-55 CEPR Discussion Paper 0265-8003 55 322483 http://ddd.uab.cat/pub/artpub/2006/67772/PREI2010_cprdispap.pdf Post-print 0001 55 5929 n5929 2006 0025 48 1 99 00028282 2009 ARTPUB PREI UAB artpubuab oai:ddd.uab.cat:67772 driver Tots els drets reservats http://www.europeana.eu/rights/rr-f/