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Laffer Curve shows relationship between tax rates and the amount of tax revenue collected by government It suggests that raising the tax rate upto a certain limit will increase the tax revenue, after which any rise in the tax rate will decrease the tax revenue A high tax rate will discourage the taxed activities, such as work and investment Laffer curve shows the two extreme point of tax rate, 0% and 100%, at both of these rate no tax revenue will be generated At a 0% tax rate, tax revenue will be zero. As no tax impose, no revenue At 100 % tax rate, all people would choose not to work because everything they earned would go to the government. Therefore, is a point lying in between 0 to 100% range, where tax revenue is maximum (Rmax) (say t%) i.e. known as optimum tax rate Any rate higher or lower than that will lower the tax revenue If government wants to increase tax revenue, it will choose optimum tax rate.
When was the Pradhan Mantri Jan Dhan Yojana (PMJDY) launched?
During whose administration was the 'Permanent Settlement' system established?
Which country’s new President, Prabowo Subianto, is expected to be India’s chief guest for Republic Day 2025?
According to the UNICEF report "Learning Interrupted," how many students faced climate-related education disruptions in 2024?
Which city did Tech Mahindra and IBM choose to inaugurate a Synergy Lounge aimed at accelerating digital adoption?
The Atal Bhujal Yojana (ABY), extended until 2028, primarily focuses on what?
How many new districts, including Meluri, have been created in Nagaland over the last three years?
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Which Armed Force recently signed a Memorandum of Understanding (MoU) with the Indian Railway Catering and Tourism Corporation (IRCTC) to ensure the saf...
Which company has entered into a joint venture agreement with Kowa Holdings for the sales and marketing of green ammonia & green hydrogen produced and s...