Optimal tax the optimum. Stipulating this condition results in the following formula for the optimal top tax rate, if incomes are Pareto distributed: formula_1 where: Empirical estimation of the parameters of this equation suggests that the revenue-maximising top tax rate is between approximately 50% and 80%, although this estimate neglects long-run behavioural responses, which would imply higher elasticities and a lower optimal tax rate. Saez's analysis can also be generalised to tax rates other than the top rate. In the late 1970s, Arthur Laffer developed the Laffer curve, which demonstrates that there are two effects of changing tax rates: an arithmetic effect—if
Larry Laffer when Lowe sent a letter asking his permission for the publication of a program under the title "Laffer Utilities", a Larry spin-off which could potentially confuse the public due to the ambiguous title. Laffer asked his secretary if she knew about the games and she told him that she had played them for years, but never made a connection. Laffer gave the permission and also paid a visit to the Sierra studios. One of Larry's trademarks is his manner of introducing himself: "Hi, my name is Larry; Larry Laffer", a reference to James Bond's introduction style, "My name is Bond;