Muqaddimah empires to collapse, with the result that lower revenue was collected from high rates." He wrote: Ibn Khaldun introduced the concept now popularly known as the Laffer curve, that increases in tax rates initially increase tax revenues, but eventually the increases in tax rates cause a decrease in tax revenues. This occurs as too high a tax rate discourages producers in the economy. Ibn Khaldun used a dialectic approach to describe the sociological implications of tax choice (which now forms a part of economics theory): This analysis is very similar to the modern economic concept known as the Laffer curve.
To each according to his contribution To each according to his contribution "To each according to his contribution" is a principle of distribution considered to be one of the defining features of socialism. It refers to an arrangement whereby individual compensation is reflective of one's contribution to the social product (total output of the economy) in terms of effort, labor and productivity. This is held in contrast to the method of distribution and compensation in capitalism, where those who own private property receive unearned income in the form of interest, rent, or profit by virtue of ownership irrespective of their contribution to the social product. This