Taxpayers' biases could reshape optimal tax systems, boosting societal welfare.
The article discusses how to create the best tax system by considering people's natural biases. The researchers look at different ways to set taxes, not just changing the tax rate. They find that people's biases can change based on how the tax system is set up. This means that the way taxes are structured can affect how people perceive them. By understanding this, we can figure out the best way to set taxes to make sure everyone pays their fair share.