The article explores how different types of taxes on capital income can help reduce inequality among people with varying levels of wealth and productivity. The researchers found that taxing capital income can increase overall welfare when households have different levels of productivity and wealth. However, if only productivity varies among households, it may be better not to tax capital income. The study also shows that the relationship between wealth and productivity influences the impact of capital income taxes on welfare. Overall, the findings suggest that the optimal tax rate on capital income depends on the specific characteristics of the population being taxed.