This version of the paper focuses primarily on lump-sum taxes and generates realistic wealth inequality by introducing persistent idiosyncratic shocks to the subjective discount factor. Labor supply is exogenous. When taxes are lump-sum, a dollar change in tax revenue is associated with a 15 cent change in aggregate consumption, compared to a response of roughly one third this size when markets are complete but households are finitely-lived. I find the response to tax changes to be larger if the interest rate is constant rather than determined endogenously, and smaller if taxes are proportional rather than lump-sum.