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Patrick A. McNutt

to ask: why not trust the rich individual to redistribute £100 to the poor individual? Equivalent to an effective tax rate of 10 per cent, a fact-finder would apply a calculus to the likely disincentive effect of such a rate weighed against the moral hazard of the poor individual, whom in the knowledge of a certain sum of £100 would be less inclined to work and earn in order to subsist. So why redistribute at all? Does it deter stealing? Some may argue that stealing is morally wrong for the rich man and sometimes morally right for the poor man, because the