The basic idea is that, if you plot the revenue generated by any given tax against its rate, you'll virtually always observe: (1) no revenue at a 0% rate; (2) no revenue at a 100% rate, and (3) between these rates the function is concave.
LafferCurve
The basic idea is that, if you plot the revenue generated by any given tax against its rate, you'll virtually always observe: (1) no revenue at a 0% rate; (2) no revenue at a 100% rate, and (3) between these rates the function is concave.
