Rational methodology for approximate estimation of the equilibrium point of the Laffer Curve

LOGOS GEOPOLITICAL INSTITUTE
contact@geopolitical-institute.com.br
Brazil, São Paulo/SP – February 28, 2024

ABSTRACT

Determining the apex point of the Laffer curve is difficult to verify theoretically. This study presents some theoretical and practical initiatives that can be taken to more reliably estimate the tax breakeven point for a given society. The study is carried out in two stages. The first stage deals with logical analyses that result in an extensive range of possible values ​​for the equilibrium point. The second step is to define, more narrowly, the range where the break-even point is, using practical criteria, which involves everything from an initial inflation analysis to market research. The study also reveals that the balance point of the Laffer Curve varies depending on the location, which indicates that reality interferes with the position of the balance point of the curve.

Keywords: Laffer curve; Tribute; Tax Revenues; Inflation; Economy

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