The Laffer curve shows the relationship between tax rates and revenue, with a maximum point known as ‘T’. Finding the exact rate of T is difficult for governments, and lowering tax rates may not always increase revenue. The curve is based on the premise that wealth accumulation is the driving mechanism behind it. The Laffer […]

The Laffer curve shows the relationship between tax rates and revenue, with a maximum point known as “T.” Finding the exact rate for T is difficult for governments, and the curve is often mischaracterized as claiming that reducing tax rates will always increase revenue. Wealth accumulation is the driving mechanism behind the curve, and it […]