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in an economy of pent up demand, lowering taxes for the wealthy provides additional dollars for private sector investing. The investment is multiplied through the economy ultimately creating higher productivity, higher employment, higher wages, and higher total tax revenues as a result. however, in a low demand economy, reducing taxes does not have a multiplier effect because dollars are simply saved and not invested into the economy. search on YouTube for clifcar for more details.
What else can I help you with?
The Laffer curve predicts the effects of changes in the tax rate on which of the following?
tax revenues
What supply side economics curve originally drawn on a napkin in a Washington bar purports to show that lower tax rates bring in greater tax revenues?
Laffer curve
What is Laffer curve?
The Laffer Curve is an economic theory that illustrates the relationship between tax rates and tax revenue. It posits that there is an optimal tax rate that maximizes revenue; if tax rates are too low, revenue is insufficient, but if they are too high, they can discourage work and investment, leading to reduced revenue. The curve suggests that increasing tax rates beyond a certain point can actually decrease total tax revenue. Essentially, it highlights the trade-off between tax rates and economic activity.
What is reaganomics closely associated with?
The Laffer Curve, which is a special case situation in economics where reducing taxes increases government revenues by stimulating the economy.
When did George Laffer die?
George Laffer died in 1933.
When was George Laffer born?
George Laffer was born in 1866.
When was Larry Laffer created?
Larry Laffer was created in 1987.
10 Points This curve sHow is that lower taxes can mean higher government revenue and it is named for what economist who drew it on Dick Cheney's cocktail napkin?
Arthur Laffer
When was Arthur Laffer born?
Arthur Laffer was born on August 14, 1940, in Youngstown, Ohio, USA.
According to the laffer curve lower tax rates might lead to?
According to the Laffer Curve, lower tax rates might lead to increased economic activity and, consequently, higher overall tax revenue. The theory posits that when tax rates are reduced, individuals and businesses are incentivized to work more, invest, and spend, which can expand the tax base. This effect can ultimately result in greater tax revenues, despite the lower rates, if the economy grows sufficiently. However, the actual outcome depends on various factors, including the existing tax rate and the specific economic context.
What does the Laffer curve show?
The laffer curve shows that there is a level of taxation at which government revenue is maximised. It assumes that government revenue will be zero if tax rate is 100% since nobody would work and assumes that if tax rate was zero then government would receive no revenue. As such it is logical to assume that there must be a tax rate between 0 and 100 which would maximise government revenueThe Laffer curve is a graph in economics that shows the relationship between the federal tax rate, and total government revenue. If the y-axis is government revenue, and the x-axis is tax rate, the graph appears to be an upside down parabola; however, if the x-axis is govt. tax revenue, and the y-axis is tax rate, the graph is a sideways, parabolic non-function. Either way, at a tax rate of 100%, there is $0 in revenue, and at a tax rate of 0%, there is also $0 in revenue. It illustrates that at a certain tax rate, govt. revenue is maximized.
Did aurthur laffer vote for Bill Clinton?
No, Arthur Laffer did not vote for Bill Clinton. Laffer is a conservative economist and was an adviser to Republican presidents, including Ronald Reagan. Therefore, it is unlikely he voted for Clinton, a Democrat.
