> ...and also because it is most helpful in reducing strategic default, rather than payment-distress-induced default,
This is just #MeansTesting by another name, a fetish for separating the "deserving poor" from "moochers" (AKA "strategic defaulters"). The PMC *loves* means-testing, but only for poor people. As Moran points out, rich people like Trump use strategic defaults all the time:
https://www.nytimes.com/2016/06/12/nyregion/donald-trump-atlantic-city.html
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so means testing is (usually) kinda bad policy, but politically popular and therefore often part of a second best solution given political constraints. Therefore, I wonder if it would be better to put the phase outs just before a large jump in the income tax rate, so that the effective marginal tax rate is more smooth and in line with a theoretical progressive optimum? You could sell this politically by defining "rich" or something to be this kink point.
If a #bureaucracy tells a person that it may take up to #49Days to get back to them, what they are actually saying is, "die".
#bureaucracy #49Days #meansTesting #australia #deathcult