The relationship between the tax rate and the amount of tax revenue collected is called the curve. This curve shows that

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02-08-2022
Business

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The relationship between the tax rate and the amount of tax revenue collected is called the curve. This curve shows that

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sakshigupta4990 sakshigupta4990 · Answer 1 · 2022-08-09T15:02:28-04:00

The relationship between the tax rate and the amount of tax revenue collected is called the Laffer curve. This curve shows the tax revenue.

Total tax revenue is the product of the tax base times the tax rate. In the current tax system, balance and assets are the main sources of tax revenue. The tax rate is the amount of tax attributed to each unit of the taxable base.

The Laffer Curve is a theory formulated by supply-side economist Arthur Laffer to illustrate the relationship between tax rates and the amount of tax revenue collected by the government. This curve is used to illustrate the argument that lower tax rates can lead to higher overall tax revenues.

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