An AI can simulate an economy millions of times to create fairer tax policy

Income inequality is one of the overarching problems of economics. One of the most effective tools policymakers have to address it is taxation: governments collect money from people according to what they earn and redistribute it either directly, via welfare schemes, or indirectly, by using it to pay for public projects. But though more taxation can lead to greater equality, taxing people too much can discourage them from working or motivate them to find ways to avoid paying--which reduces the overall pot. Getting the balance right is not easy. Economists typically rely on assumptions that are hard to validate.