Regressive Tax System Unveiled: Poorer Individuals Forced to Pay More
The article explores the best way to tax people for public goods when the government doesn't know their incomes. It looks at a model for designing taxes that are fair and encourage people to report their income honestly. The study finds that in some cases, the best tax system can be achieved, but in others, poorer people end up paying a higher percentage of their income in taxes than richer people. The amount of tax someone pays also goes up as their income increases. The research shows that with certain conditions, similar results can be found for more than two people.