Governments Can Boost Public Welfare by Optimizing Tax and Spending Policies
The article discusses two different ways to figure out the best way to provide public goods. One way focuses on taxes and fairness, while the other way adjusts income taxes to be fairer. Both ways actually come from the same basic idea. The new way gives a simple formula for how much public goods should be provided, without needing to make strong assumptions about people's preferences. This formula shows that taxes can still be important, but the most important factors are different. The traditional formula only works in special cases.