Files are available under licenses specified on their description page. The original idea of such a curve is from martin gardner. Laffer is best known for the laffer curve, an illustration of the concept that there exists some tax rate between 0% and 100% that will result in maximum tax revenue for. Tax rate cuts and tax compliance the laffer curve revisited. Most importantly, we show that the laffer curve can arise even with very small changes in labor supply effects. Pages in category laffer curve this category contains only the following page. The methodology consisted of calculating the average industry.
It began with a 1978 article published by jude wanniski in the public interest entitled, taxes, revenues, and the laffer curve. The neo laffer curve is a parody of the laffer curve, illustrating how faulty assumptions can undermine the study of economics. Arthur laffer, american economist who propounded the idea that lowering tax rates could result in higher revenues. In economics, the laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the governments tax revenue. Permission is granted to copy, distribute andor modify this document under the terms of the gnu free documentation license, version 1.
The laffer curve illustrates the idea that above a specific tax rate, cuts to the rate cause. An explication of the laffer curve in a twofactor model. Media in category laffer curve the following files are in this category, out of total. Blinderthe ideas of economists andpolitical philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. All structured data from the file and property namespaces is available under the creative commons cc0 license. Acomment on the laffer model max moszer one feels constrained to step lightly in an examination of the laffer curve. Dicono che e difficile capire i parametri e che negli usa ha fallito. E alla base della politica economica statunitense e inglese degli anni 80. Opinions expressed by forbes contributors are their own. The legend of the laffer curve the story of how the laffer curve got its name isnt one of the just so stories by rudyard kipling.
This curve in particular is based on a graph from an article in the wall street journal. Laffer the story of how the laffer curve got its name begins with a 1978 article by jude wanniski in the public interest entitled, taxes, revenues, and the laffer curve. Keynes the first part of the paper by canto, joines, and laffer. The study was comprehensive, involving twelve of the main economic sectors in terms of collection of the tax. A copy of the license is included in the section entitled gnu free documentation license. Laffer contends that higher tax rates, by removing incen.
The laffer curve assumes that no tax revenue is raised at the extreme tax rates of 0% and 100%, and that there is a tax rate between 0% and 100% that maximizes government tax revenue. This page was last edited on 23 december 2018, at 04. Model we investigate an economy populated by a unit volume of taxpayers. There is a single tax authority with limited resources, which audits taxpayers. This paper analyzed the ipi taxation from the perspective of the laffer curve.
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