Laffer effect
© Copyright Frank D. Kanu 2000-2008
Arthur B. Laffer describes the connection between the income tax and the tax revenues.
Update 2/26/2007: The link does not work anymore. Please let me know if you of are aware of a working one. Thank you.
income tax of 100% = no revenue since individual don’t work : The state takes it all
income tax of 0% = no revenue
In between a few tax revenue maximizing tax rates. If taxes are raised high enough, individuals will lose the incentive to make more money, and raising taxes will actually decrease revenues.
Technorati (All Links are external): arthur b laffer incentive income tax money raised high tax rates tax revenue tax revenues business general
Arthur B. Laffer describes the connection between the income tax and the tax revenues.
Update 2/26/2007: The link does not work anymore. Please let me know if you of are aware of a working one. Thank you.
income tax of 100% = no revenue since individual don’t work : The state takes it all
income tax of 0% = no revenue
In between a few tax revenue maximizing tax rates. If taxes are raised high enough, individuals will lose the incentive to make more money, and raising taxes will actually decrease revenues.
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arthur b laffer incentive income tax money raised high tax rates tax revenue tax revenuesTechnorati (All Links are external): arthur b laffer incentive income tax money raised high tax rates tax revenue tax revenues business general
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