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Rory Sutherland: Human Behavior, Innovation, and Alchemy (EP.16)

Infinite Loops

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Don't Do Tax Cuts, but Send People an Annual Rebate

i wanted to design a tax system which actually allows people to be held to account. Keep the tax rate constant, but send people an annual rebate. If you give half or all your rebate, or even a quarter of your rebate, you get a car sticker. You get some sort of badge, provable badge that you did it. No one who takes the rebate who's genuinely short of money is going to blame them for taking the whole rebate. It's very easy to be generous with other people's money, isn't it? Indeed always. Ironic, of course, my mother used to say, the longer he spoke of his honour, the quicker we counted the spoons spot

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