Economics Laffer Curve Questions
The impact of tax efficiency on the Laffer Curve is that as tax efficiency increases, the curve shifts to the right. This means that at lower tax rates, there is a higher level of tax revenue collected, as taxpayers are more willing and able to pay their taxes. Conversely, as tax efficiency decreases, the curve shifts to the left, indicating that higher tax rates may result in lower tax revenue, as taxpayers may engage in tax avoidance or evasion strategies.