Why are some people wealthy while others are poor? To what extent can governments affect
inequality? Which instruments should they use? Answering these questions requires …

This paper reviews recent developments in the theory and practice of optimal capital
taxation. We emphasize three main rationales for capital taxation. First, the frontier between …

This paper discusses the progressive taxation of household wealth. We first discuss what
wealth is, how it is distributed, and how much revenue a progressive wealth tax could …

How does wealth taxation differ from capital income taxation? When the return on
investment is equal across individuals, a well-known result is that the two tax systems are …

The goal of this chapter is to study how, and by how much, household income, wealth, and
preference heterogeneity amplify and propagate a macroeconomic shock. We focus on the …

It's time to rewrite the rules—to curb the runaway flow of wealth to the top one percent, to
restore security and opportunity for the middle class, and to foster stronger growth rooted in …

The optimal design of a tax system is a topic that has long fascinated economic theorists and
flummoxed economic policymakers. This paper explores the interplay between tax theory …

This paper develops a theory of optimal capital taxation that expresses optimal tax formulas
in sufficient statistics. We first consider a simple model with utility functions linear in …

Rising inequality in the permanent component of labor income, henceforth permanent
income, has been a major force behind the secular increase in US labor income inequality …

In recent years, profit shifting by multinational companies (MNCs) has generated substantial
revenue costs to the US government. The Tax Cuts and Jobs Act (TCJA) changed US …