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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.
Cisco has signed an agreement with the Karnataka government to train 40,000 people in cybersecurity skills and awareness. According to the memorandum of...
Which of the following ministry recently launched the Citizen Perception Survey-2022?
Which new category has been introduced under the Pradhan Mantri Mudra Yojana to cover loans between ₹10 lakh and ₹20 lakh?
Consider the following statements with reference to Central Bank Digital Currency (CBDC):
I. The digital fiat currency or CBDC can be transact...
In a securitization, the issuer of asset-backed securities is best describes as the:
Which of the following is not true regarding CGTMSE Scheme?
I. Fund and non-...
Which currency did Zimbabwe launch and is backed by gold reserves to address economic instability?
What is the basic objective behind setting up NACH ?
"Consider the following statement regarding a Scheme SMILE - Support for Marginalized Individuals for Livelihood and Enterprise -"
I. It is launc...
What percentage of global GDP is contributed by MSMEs, as per the United Nations?