Lower Taxes, Higher Revenue

Discuss important concept from economics the laffer curve this concept is named after the man who developed the artful after major american economist was tired of the universe chicago university of southern california and elsewhere the laffer curve illustrator two most important things we need to know about taxes how much money the government in raising taxes in a word level of taxation the government might start getting less not more revenue the laffer curve is illustrated here by two dimensional graph horizontal line is the tax rate in vertical
line is the revenue received from the tax rate first because 0ne number 0800 revenue accordingly year olds on first point on the curve now suppose the government uses​ .this means that it has an upward slope at least four in ludlow tax rate for the bath now suppose the government charges a 100 percent tax rate if this happens the norwood work that is why would anyone worked in the government going to take all the money that they may have known works the national income 10 this means that government revenue would be 100 percent of 0.08 must be here now with complete we do we see that the curve muscle heart that is it look like this or this or this but it has to have a heart this is simply because the revenue i have to go up in the low tax rate by the graph and has truck going down to reach the point we drew at the 100 percent tax rate with the cut down word imply something remarkable something that few of those who push higher and higher taxes want to knit it mean someone tax rates are high in that make them higher blackley bring in less revenue to the government the severn facts the current practice francis drake the great depression will congress passed holly smoot tariff though i want to build raised taxes on imported goods remi that came from those taxes actually decreased maurice example the current early 19 eighty's after president reagan and congress drastically reduce the tax rate on the tax revenue that came from the ridge actually increased all timers even most left wing ones agree that rule africa flags real life has a heart that therefore the curve has a downward-sloping 5 minutes some point tax revenues start going down to increase rates so well then becomes disagree with this ring about exactly where the heartbreakers night at my first economics class in 1984 stanford university the textbook said that the hobbit somewhere around the city percent tax rate repair lee i will start something wrong evidence from an unexpected source suggest that the harbour cruise in a much lower tax rate something around 33 percent that source is a study by christina romer in a husband david robert boulter economics professors at the university of california berkeley christina romer was the chairman of president barack obama's council of economic advisers in other words the study was written by will the most influential economists in the united states and was published in the american economic review most widely respected economics train in the world and national income response to tax rates as far as we can sort of here winners that you do not have the results of wight at the hop on the laffer curve cruise for the tax raiders round 33 percent much lower than icons previously thought his findings and political terms they suggest that no matter what your politics should not want tax rates to be above 33 percent obviously conservatism any mileage rate you'll be lower than air but even if you are an extreme left winger only goal is to make government