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I'm still not clear what the actual benefits are. In effect, adding a means test to your aid is just a tax. It just happens to be a tax that is hard to reason about and causes all sorts of weird effects. Wouldn't it be simpler to give everyone whatever subsidy we wanted to give; and as a separate matter (possibly simultaneously), increase taxes on the "richer" people (where richer is whatever we would have determined is wealthy enough to not need assistance).



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