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In the general sense, which is the sense I meant it, it's obvious. When you tax 100% and 0%, then your tax revenue goes to zero. When you tax 99% and 1%, they'r
by defertoreptar 8y ago
In the general sense, which is the sense I meant it, it's obvious. When you tax 100% and 0%, then your tax revenue goes to zero. When you tax 99% and 1%, they're a bit more than zero, but not by much. At some equilibrium, you maximize tax revenue. If the current tax is above that equilibrium, then logically you will increase tax revenue by lowering the tax rate. AKA the Laffer Curve.