This paper revisits two classic questions in public finance: (i) Should capital income taxes be eliminated? (ii) Is uniform labor income taxation optimal? I examine these questions in the context of wage rigidity, a feature prevalent in economies with strong labor protections or centralized wage-setting institutions. I demonstrate that wage adjustment frictions significantly alter the design of optimal income tax policies. Specifically, I show that, under wage rigidity and sufficiently high TFP, capital taxes become welfare-neutral, making strictly positive capital tax rates optimal. Additionally, while optimal capital tax rates remain constant over time, optimal labor tax rates may vary. I show how the evolution of TFP and wage dynamics determine whether labor taxes should be front-loaded or back-loaded.