A substantial economic literature has developed in recent years that suggests that taxation of capital in theory can have very harmful economic consequences over time.  Indeed, some authors who have conducted research based on theoretical grounds have even argued that capital taxes should be set to zero.  Yet most countries continue to rely on capital taxation, and very little empirical work has been done until now to document that this practice has caused significant economic harm.  Professor Casey Mulligan of the University of Chicago has just finished an innovative new study in this area.  At this event he will present his findings and will discuss how--by using a novel approach--he has come to the conclusion that capital taxation is the major distortion that exists today in capital markets.