Stephen A. Lawrence wrote: > > Remember the Laffer curve debates, years back? At 0% income tax the > government's net tax revenue is zero. At 100% income tax nobody works > for taxable dollars and again the government's tax take is zero. So, > the _maximum_ tax take is achieved at some tax rate L, with 0 < L < 100. > The curve which relates government tax revenue to tax rate is called > the Laffer curve, and its peak is the optimal tax rate for maximum > government income.
A 100% income tax would make for a simple flat tax system, and as long as a significant fraction of EARNED income is returned by law people would continue to work for taxable dollars. Harry
