Optimal capital tax rate revealed: 36% to boost insurance and redistribution!
The study looked at how to best tax income to help people with different abilities and protect against unexpected financial problems. They found that it's a good idea to tax capital income, like investments, at a rate of 36%. They also suggest a flat tax of 23% on labor income, with a $6,000 deduction. This helps balance the need for insurance and redistribution while minimizing negative effects on people's decisions to work or save.