Approximating the Marginal Revenue Maximizing Point: A Brief Analysis Employing the Laffer Curve

Abstract

For centuries governments across the world have taxed their people. Different rates are used; however, the ultimate

goal is to generate the most revenue. This goal has led governments to raise taxes, as theoretically the higher the tax,

the more revenue collected. This was proven to be true only to a certain extent by Arthur Laffer in 1970s. In this

paper, I will discuss from an economic standpoint why- regardless of political ideology- taxes rates should not

exceed 33 percent.