Global digital transformation contributes to the realization of national interests, the improvement of financial management, and the development of financial technologies in the corporate sector of the economy. In the current extremely difficult conditions of a full-scale war, as part of the renewal of the strategy of the financial sector, the Ministry of Finance of Ukraine, the National Bank of Ukraine, together with IMF experts, are gradually developing the principles of assessing the quality of assets and conducting stress tests for business entities and financial institutions.

This paper considers top income taxation when (i) new ideas drive economic growth, (ii) the reward for successful innovation is a top income, and (iii) innovation cannot be perfectly targeted by a research subsidy—think about the business methods of Walmart, the creation of Uber, or the “idea” of Amazon. These conditions lead to a new force affecting the optimal top tax rate: by slowing the creation of new ideas that drive aggregate GDP, top income taxation reduces everyone’s income, not just income at the top. This force sharply constrains both revenue-maximizing and welfare-maximizing top tax rates.