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What does it mean?
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It means they get audited more often.
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In equilibrium, richer people aren't necessarily going to cheat more,
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but they are going to get audited more, and that's true.
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The federal audit rates are designed
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so they audit the rich more than they audit the poor.
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Again, it's not because they think the rich are inherently less honest,
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or the poor are inherently more honest, or anything like that,
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it's simply that the gains to cheating
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and not getting caught are bigger if you're rich,
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so you need to audit more to push back into equilibrium.
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Now, suppose we did in fact want to use the policy