Laffer curve It is possible that if all producers are endowed with two survival factors in the market (ability to produce efficiently and ability to avoid tax), then the revenues raised under tax avoidance can be greater than without avoidance, and thus the Laffer curve maximum is found to be farther right than thought. The reason for this result is that if producers with low productive abilities (high production costs) tend to have strong avoidance abilities as well, a uniform tax on producers actually becomes a tax that discriminates on the ability to pay. Laffer curve In economics, the Laffer curve illustrates
From each according to his ability, to each according to his needs From each according to his ability, to each according to his needs "From each according to his ability, to each according to his needs" is a slogan popularised by Karl Marx in his 1875 "Critique of the Gotha Program". The principle refers to free access and distribution of goods, capital and services. In the Marxist view, such an arrangement will be made possible by the abundance of goods and services that a developed communist system will produce; the idea is that, with the full development of socialism and unfettered productive forces, there will be enough to satisfy everyone's needs. The