User:Nick Gardner /Sandbox

• 1)Optimal marginal tax rate schedules depend on the distribution of ability;

• 2) The optimal marginal tax schedule could decline at high incomes;

• 3) A flat tax, with a universal lump-sum transfer, could be close to optimal; *4) The optimal extent of redistribution rises with wage inequality;

• 5) Taxes should depend on personal characteristics as well as income;

• 6) Only final goods ought to be taxed, and typically they ought to be taxed uniformly;

• 7) Capital income ought to be untaxed, at least in expectation; and

• 8) In stochastic, dynamic economies, optimal tax policy requires increased sophistication.