Does old capital matter for implementing a Pareto-improving tax reform?

Is it possible to replace the income tax by a consumption tax or a wage tax such that (i) a dynamic (intergenerational) Pareto-improvement is obtained and (ii) only the information available from enforcing the income tax is used? In this note it is shown that such a transition is feasible if and only if in a static setting the consumption or wage tax induces less distortions than the income tax.

Gaube, Thomas and Robert Schwager (2002), Does old capital matter for implementing a Pareto-improving tax reform?, mimeo