Capital Income Taxation and Household Production

Patricia Apps () and Ray Rees

No 9607, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The Atkinson-Stiglitz Theorem and its extensions have been interpreted as implying that capital income should not be taxed. If, as seems reasonable on empirical grounds, we introduce production of household goods with close market substitutes, this conclusion no longer holds. We analyse optimal capital income taxation for this case.

Keywords: optimal capital taxation; household production (search for similar items in EconPapers)
JEL-codes: D13 H22 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2015-12
New Economics Papers: this item is included in nep-pub
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