Laffer curve Laffer curve In economics, the Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of government revenue. It illustrates the concept of taxable income elasticity—i.e., taxable income changes in response to changes in the rate of taxation. The Laffer curve assumes that no tax revenue is raised at the extreme tax rates of 0% and 100%, and that there is a rate between 0% and 100% that maximizes government taxation revenue. The Laffer curve is typically represented as a graph that starts at 0% tax with zero revenue, rises to a maximum rate of revenue
To each according to his contribution concept also formed the basic definition of socialism for its pre-Marxist proponents, including Ricardian socialists, classical economists, and individualist anarchists. "To each according to his contribution" was a concept espoused by many members of the socialist and labor movement. Examples of this can be found from Ferdinand Lassalle's and Eugen Dühring's statements to Leon Trotsky's writings. However, it was Vladimir Lenin, inspired by Marx's writing on the subject in his "Critique of the Gotha Programme", who claimed the principle to be a fundamental element of socialism within Marxist theory. Libertarian socialist thinkers, such as American anarchist Benjamin Tucker, defined socialism