Reducing capital income taxes can attract foreign capital and boost economic growth, but it's a balancing act. By studying how taxes on capital income impact the global distribution of capital and economic growth, researchers found that lowering taxes can attract more capital to a country, but it might also slow down the rate at which the economy grows. This means that while a country can increase its share of global capital by changing its tax policies, it could potentially hinder its own economic growth in the process.