New OECD paper on the differences in approach in taxing labour income and capital income. Its research shows what we already know – that capital income tends to get more beneficial tax treatment than labour income.
Given that those earning capital income tend to be among the wealthier in society, perhaps increasing taxes in this area could be an alternative to introducing a wealth tax? Certainly something to think about for developing countries. Wealth taxes may sound attractive, but they bring with them a whole suite of complexities.