New Study Reveals Optimal Tax Strategy for Economic Stability
The study explores optimal taxation in economies with different types of people and preferences. They find that a steady-state capital tax is not needed to fix economic issues, and it's better to issue debt instead. The optimal capital tax is only needed during the transition period and depends on how people save money. The study shows that taxing capital in the long run doesn't solve the main problem, so it's better to use debt instead.