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by dllthomas
1666 days ago
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Unless your laws are dictating how much people work, individual behavior dictates "the Laffer curve" in the generalized sense most people mean it. If you tax zero, you get zero revenue. If you tax 100% you get... zero revenue because no one works if you take all of the earnings. Between the two we know we find positive values. The particular shape of the curve in a particular environment is an empirical question. Where it is a political tool is where it was applied before doing that empirical work, and where it is presented with unrealistic shapes (including, notably, most of search results when I search for "Laffer curve"!) |
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