Reaganomics the tax rate cuts would more than cover any increases in federal debt, was influenced by a theoretical taxation model based on the elasticity of tax rates, known as the Laffer curve. Arthur Laffer's model predicts that excessive tax rates actually reduce potential tax revenues, by lowering the incentive to produce; the model also predicts that insufficient tax rates (rates below the optimum level for a given economy) lead directly to a reduction in tax revenues. Reagan lifted remaining domestic petroleum price and allocation controls on January 28, 1981, and lowered the oil windfall profits tax in August 1981. He
From each according to his ability, to each according to his needs in solidum is that 'everyone assumes responsibility for anyone who cannot pay his debt, and he is conversely responsible for everyone else'. James Furner then argues: 'If x = a disadvantage, and y = action to redress that disadvantage, the principle of solidarity is: if any member of a group acquires x, each member has a duty to perform y (if they can assist). All we then need to add, to get to the fundamental principle of developed communism, is to assume that non-satisfaction of a need is a disadvantage. The corresponding principle of solidarity in respect of need says: