Supply-side economics that Nixon abandoned. The Laffer curve embodies a postulate of supply-side economics: that tax rates and tax revenues are distinct, with government tax revenues the same at a 100% tax rate as they are at a 0% tax rate and maximum revenue somewhere in between these two values. Supply-siders argued that in a high tax rate environment lowering tax rates would result in either increased revenues or smaller revenue losses than one would expect relying on only static estimates of the previous tax base. This led supply-siders to advocate large reductions in marginal income and capital gains tax rates to
To each according to his contribution the amount of labor contributed increases. However capitalism can lead to a situation where the means of production are owned by a small minority who do not produce, but rather live off the labor of others. Socialism is said to remedy this by putting the means of production in common hands and rewarding individuals according to their contributions. In the "Critique of the Gotha Programme", while criticizing Lassalle's ideas, Marx elaborates on the theory. According to Marx's analysis of the Programme, Lassalle suggests that "the proceeds of labor belong undiminished with equal right to all members of society". While agreeing