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
Laffer, South Australia which was conducted in August 2016 reports that Laffer had a population of 48 people. Laffer is located within the federal division of Barker, the state electoral district of MacKillop and the local government area of the Tatiara District Council. Laffer, South Australia Laffer is a locality in the Australian state of South Australia located in the state’s south-east about south-east of the state capital of Adelaide and about west of the municipal seat in Bordertown. Its boundaries were created on 24 August 2000. Its name is derived from the cadastral unit of the Hundred of Laffer which it occupies