Optimal tax tax rates are lowered, revenue will be decrease by the same amount—and an economic effect—which provides incentives for individuals to increase their work output through low tax rates. These correspond to the mechanical and behavioural effects discussed by Saez. The Laffer Curve illustrates that, for sufficiently high tax levels, the (negative) behavioural effect will outweigh the (positive) mechanical effect of a tax increase, and so increasing tax rates will reduce tax revenue. In fact, tax revenue with a tax rate of 100% is likely to be 0, since there is no remaining incentive to work at all. Therefore, the tax
From each according to his ability, to each according to his needs complete paragraph containing Marx's statement of the creed in the "Critique of the Gotha Program" is as follows: Although Marx is popularly thought of as the originator of the phrase, the slogan was common within the socialist movement. For example, it was used by August Becker in 1844 and Louis Blanc in 1851. The origin of this phrasing has also been attributed to the French utopian Étienne-Gabriel Morelly, who proposed in his 1755 "Code of Nature" "Sacred and Fundamental Laws that would tear out the roots of vice and of all the evils of a society", including: A similar phrase