This study examines how taxes on labor and capital incomes impact economic growth in a model focusing on human capital and physical capital accumulation. By tweaking various economic factors and tax policies, researchers determined three growth scenarios: normal growth, exogenous growth, or paradoxical growth. They found that preferences, technologies, depreciation rates, and fiscal policies all play a role in shaping these outcomes. The study also quantified the inefficiency caused by taxing capital earnings, with the associated welfare costs linked to short-term human capital investments. In essence, the type of economic growth a country experiences can be influenced by how taxes are structured and how investments in human capital are managed.