Jan '23 • General discussion
Laffer curve
Have you derived the Laffer curve, government tax income vs tax rate, in Minsky?
Or did I just give myself a Minsky exercise?
The Laffer thesis is that a high tax rate reduces productivity and therefore tax income, a 100% tax would make a dead economy. A lower rate increases productivity therefore increasing income to tax, but zero tax rate would mean zero tax income, the tax rate to maximize government tax income is somewhere in between. I have never seen an analysis of where the max is. Art Laffer implies that the max is way lower than the current rate.
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Laffer curve
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