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the Laffer curve is increasing at a diminishing rate up to t=1/3 and approaches a tax revenue of zero at t = .
Now we turn to deriving the Laffer curve for the case of N identical individuals whose gross wage is 8(W = 8).
This Laffer curve reaches its peak at t = 1/3 and zero value tax revenues at t = 0 and at t = 0.
We now turn to deriving the aggregate Laffer curve of society as a whole, i.
5 the wealthy individual's Laffer curve is increasing, i.
In particular, it allows one to explore the Laffer curve in a long-run context and also illustrates how the Laffer curve depends on the disposition of tax revenues.
This finding has strong implications for the Laffer curve since the response of total revenues to a change in the income tax depends on changes in income from private inputs.
As indicated in Chart 3, the Laffer curve with public capital expenditures will be above the Laffer curve for lump-sum transfers.
Equivalently, the Laffer curve for public consumption lies above the Laffer curve of public investment (and it can be shown that the revenue-maximizing tax rate will be higher, too).
Because of this weighted averaging process, the federal tax rate will lie on the upper (or backward-bending) portion of the Laffer curve in one state and on the lower portion of the Laffer curve in the other.
R]), which is decreasing in each tax rate when both taxes are on the lower portion of the Laffer curve (both M[R.
The result here is that revenues decrease with the number of taxing authorities, not because of beneficial interjurisdictional competition, but because of the overtaxation of the tax base pushing the governments onto the backward-bending portion of the Laffer curve.