Laffer curve

Governments around the globe, especially the Belgian one, should reacquaint themselves with the Laffer curve. It is straightforward that tax revenue will be 0 at rates of 0% and 100%. The curve in between reaches a peak, after which revenue diminishes because income and capital starts to flee because it is perceived as unfair and alternatives become more attractive. This is a factor that seems to be neglected and contributes to what the Panama Papers have revealed.

laffer-curve

 

2 Responses to “ Laffer curve ”

  1. Lou De Buyser

    http://deoemma.nl/een-kritiek-op-de-trickle-down-theorie/

    Het probleem van de theorie van de Laffer-curve is dat het feitelijk onmogelijk is om vast te stellen welk belastingpercentage de belastingopbrengst van de staat maximaliseert. Dit maakt de theorie dus praktisch onbruikbaar.

  2. Steven Di Glitterati

    Het effect kan in praktijk toch opgevolgd worden? Dat hoort bij een macroeconomisch beleid.

Leave a Reply