Fiscal Policy - The Laffer Curve
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The Laffer Curve isn’t an ideological weapon—it’s just a model showing the relationship between tax rates and tax revenue. Imagine a graph: • The x-axis is the tax rate (0% → 100%). • The y-axis is total tax revenue collected by the government. At 0% tax, the government collects nothing—obviously. At 100% tax, the government also collects very little or nothing—because people have no incentive to work or invest if the government takes everything. Somewhere in between, there’s a sweet spot where
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🎯 "And that, ladies and gentlemen, is the Laffer curve." Watch as Art Laffer explains the Laffer curve. 👇 https://www.thetimes.com/business-money/money/article/capital-gains-tax-wealth-raid-gamble-isnt-paying-off-0t8m3nxh9#:~:text=New figures show that the,designed to raise more tax. | Institute of Economic Affairs
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