Approximating the Marginal Revenue Maximizing Point: A Brief Analysis Employing the Laffer Curve
Lum, J. (2018). Approximating the Marginal Revenue Maximizing Point: A Brief Analysis Employing the Laffer Curve. Bulletin of Business and Economics, 7(3), 94-96.
For centuries governments across the world have taxed their people. Different rates are used; however, the ultimate goal is to generate the most revenue. This goal has led governments to raise taxes, as theoretically the higher the tax, the more revenue collected. This was proven to be true only to a certain extent by Arthur Laffer in 1970s. In this paper, I will discuss from an economic standpoint why- regardless of political ideology- taxes rates should not exceed 33 percent.
taxation, Laffer curve, optimal taxation, tax efficiency
Research Foundation for Humanity (RFH)
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