Optimal taxation and finite horizon

Within the Blanchard [Blanchard, O., 1985. Debt, Deficits and Finite Horizons. Journal of Political Economy 93 (2), 223–247] model, we determine optimal capital and labor income taxation. We discuss the conditions for non-zero capital income taxation in the long term. We make explicit the conditions for time consistent capital income taxation. We clarify the role of finite horizon regarding second-best optimal taxation.