Optimal tax policy could lift millions out of poverty, study finds.
The article explores how tax policies can help reduce poverty by looking at how the government can provide public goods and taxes. The researchers suggest that it may be beneficial to have different tax rates on different goods, including savings. They also found that it could be helpful to have negative tax rates for low-income individuals, which means giving them wage subsidies. Additionally, the study provides guidelines on how public goods should be provided to minimize poverty.