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Taxes reduce people's disposable income while government spending programs increase people's disposable income (or at least increase their consumption in the case of in-kind transfers).

Taxes reduce people's disposable income while government spending programs increase people's disposable income (or at least increase their consumption in the case of in-kind transfers). Therefore, taxes and government spending "net out" and have little effect on estimates of income inequality or poverty. (The first sentence is true and provided as background. You should address whether the second sentence is true, false, or uncertain.)

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