The laffer curve works decently when there is high inflation. Currently we have low inflation. It is an interesting way to control inflation through the use o

The laffer curve works decently when there is high inflation. Currently we have low inflation. It is an interesting way to control inflation through the use of taxes. However, it has also been sold as a way to make taxes 'fair'. Fair is everyone pays the same no matter what. No freebies, no deductions, nothing. Once you introduce incentives or sin taxes you skew the system. There is now lots of money on the line and people will game that system. Economics also has lots of math that 'works' but in the real world flies apart because of secondary effects. For example the 18th amendment. It sure got rid of booze but created an interesting underground of violence and ways to smuggle/hide it. A secondary effect. No tax issue exists in a vacuum. Anyone who says 'my way is the most amazing way' has not thought through all the secondary effects. For example lets say you want to get rid of something, million dollar cars. Lets tax it at 99%. The rich were going to buy it one way or the other. The tax is meaningless to them other than an annoyance that they will try to work around. You have not eliminated anything. You can get the same effect on the lower end. You want people to stop doing something but by putting a higher tax on it you have just basically said 'only rich people get this'. Many would not consider that 'fair' either. The word 'fair' is also used many times. It is being used in place of equity. Because it sounds nicer. The laffer curve is a way to introduce perfect price discrimination into tax law. Getting it 'right' is the same issue that most economic models have. They can define pretty well their supply curve. The problem comes when you try to define that demand curve. That thing changes from day to day and whatever I ate for breakfast or I slept too long and feel kinda groggy your ceo said something on twitter. Economists can kinda get it close but it moves around too much for you to make good decisions you can make kind of hand wavy ones. The demand curve changes! As you want MR=MC. But that point is more like an area. If you get that wrong you can over/under charge and mess things up later on. The laffer curve can plot its supply very nicely. But it has the same issue as all other models defining the demand curve. The laffer curve demand plot is usually conspicuously missing when shown to people. As the laffer curve would also be almost by definition a monopoly position as only one thing controls it. So getting MR=MC right is even more important. That is just the 2d curve on that thing. The 3d would be some definition of equity. I do not know of anyone looking into that sort of thing other than the quants.