Under conditions of market equilibrium, the distribution of capital incomefollows a Pareto power law, with an exponent that characterizes the givenequilibrium. Here, a simple taxation scheme is proposed such that the post-taxcapital income distribution remains an equilibrium distribution, albeit with adifferent exponent. This taxation scheme is shown to be progressive, and itsparameters can be simply derived from (i) the total amount of tax that will belevied, (ii) the threshold selected above which capital income will be taxedand (iii) the total amount of capital income. The latter can be obtained eitherby using Piketty's estimates of the capital/labor income ratio or by fittingthe initial Pareto exponent. Both ways moreover provide a check on the amountof declared income from capital.
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