Optimal capital taxes shift to benefit middle class under political constraints.
The paper looks at how taxes on wealth change based on political pressures. If a big enough group wants change, the tax policy will be reformed. If the threat is to make everyone's spending equal, then taxes on savings will be low for the middle class but high for the poor and rich. But if the government can suggest a different reform to get more support, then taxes on wealth will be higher for the rich.