The article presents a model to figure out the best way to tax inheritance and capital. The researchers found that the optimal tax rate on inheritances should be higher for wealthy individuals and those who don't receive much inheritance. They also discovered that it's important to tax capital even with optimal labor taxation. Additionally, they suggest that taxing capital is necessary due to the finite long-run elasticities of inheritance to tax rates. Finally, the researchers discuss how adding market imperfections and shocks to rates of return can lead to changes in inheritance and capital taxation.