True, but you just increase redistribution to account for that. In fact, it's quite possible to tax something that everyone consumes a similar amount of, like say gas, and then redistribute the same amount of money back to people, to lead to a better solution. This basically raises the price of gas, but doesn't make anyone worse of - it just means they purchase less gas (as the price is higher) and more of other goods (as they have the same spending power as before).
Admittedly that has admin costs, but it can be done efficiently if there's no means testing involved - just a straight handout. In the UK, anyone with a child collects child benefit each month, it's just automatically paid to everyone. Simple.
Admittedly that has admin costs, but it can be done efficiently if there's no means testing involved - just a straight handout. In the UK, anyone with a child collects child benefit each month, it's just automatically paid to everyone. Simple.
Comment