Analysis of the relationship between the tax rate and government revenue based on the Nobel Prize in Economics, Arthur B. Laffer. With a tax rate of 0 %, the government revenue is 0. With a tax rate of 100 %, the government revenue is also 0, since nobody would be employed. A bell-shaped curve is created between these two poles.
Laffer curve
Was the explanation to "Laffer curve"Helpful? Rate now:
More explanations about taxes
- Income tax: business expenses, special expenses and extraordinary burdens
- Revenue sovereignty
- Competing Legislation
- Survey procedure
- Place of management in tax law
- Legal sources
- Transparency principle
- Tax entanglement
- Synthetic tax
- Schedule tax
- Import sales tax (acquisition tax)
- Performance principle
- What is tax evasion and black money?
- Income tax assessment
- Expense taxes