Based on the results of a study applying comparable fiscal incidence analysis to twenty-eight low and middle income countries, Prof. Nora Lustig (Tulane University, USA) argue that:
- Governments should design their tax and transfers system so that the poor do not end up as net payers.
- Efficient regressive taxes when combined with well-targeted transfers can result in a net fiscal system that is equalizing.
- To assess the impact of the fiscal system on people's standard of living, the effect of taxation and spending must be measured not only on inequality but also on poverty.