Indeterminacy, labor and capital income taxes, and non-linear tax schedules

► This paper examines the role of procyclical and countercyclical tax rates on labor and capital income in indeterminacy. ► The cyclicality of labor income taxes has the monotonically negative impact on the possibility of indeterminacy. ► The non-monotonic relations exist between the cyclicality of capital income taxes and the likelihood of indeterminacy.