IMG_3095.jpg - Tax Revenuela Laffer Curve b a Beyond point b the tax revenue will decline Government always wants to be at point\"6 Tax Rate 25 35 If

IMG_3095.jpg - Tax Revenuela Laffer Curve b a Beyond point...

This preview shows page 1 out of 1 page.

Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

Unformatted text preview: Tax Revenuela Laffer Curve : b a . Beyond point " b " the tax revenue will decline . Government always wants to be at point "6 " Tax Rate 25% 35 % . If there are tax cuts the revenue will go up to a certain point 2 Reasons why it works : 1 . ) with lower taxes , people are encouraged to work more so they pay more taxes 2. ) People who don't pay taxes will start paying taxes . Suppliers will increase production , causing the AS to shift to the right ( economic growth ) PPF will shift to right too Myths about Public Debt : . Federal government will go bankrupt . Shifts burden future generation Facts about Public Delot : . It causes a crowding out effect Crowding Out Effect: Too much public debt drives out private investments...
View Full Document

  • Spring '16
  • Manley

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors