Q1: Given three policies in the presentation: CSSA, cash handout, tax refund. In Hong Kong, which financial assistance policy is a long-term policy?
A1: CSSA, tax refund.
Q2: Comparing three fiscal policies: CSSA, cash handout, tax refund, which one would equalize income?
A2: CSSA, because it increases the disposable income of low-income households and does not change the disposable income of high-income households, narrowing the income gap and reducing the income inequality.
Q3: Why tax refund has smaller effect on increasing the income of poor people?
A3: The refunded income account for a large proportion of rich people's income while share only a small proportion of poor people's income. The income gap is not narrowed.