Laffer curve and many others advocate a zero capital gains rate. The increased aggregate supply would result in increased aggregate demand, hence the term "supply-side economics". Laffer assumes that the government's revenue is a continuous function of the tax rate. However, in some theoretical models, the Laffer curve can be discontinuous, leading to an inability to devise a revenue-maximizing tax rate solution. Additionally, the Laffer curve depends on the assumption that tax revenue is used to provide a public good that is separable in utility and separate from labor supply, which may not be true in practice. The Laffer curve as presented
To each according to his contribution is derived from greater training requirements, job intensity, safety hazards, etc.—the more one is rewarded for the labor contributed. The purpose of the principle, as Trotsky would later state, is to promote productivity. This is done by creating incentives to work harder, longer, and more productively. The principle is ultimately a stowaway from capitalism that, according to Marx, will vanish as work becomes more automated and enjoyable, and goods become available in abundance. The principle has its roots in the way that capitalism manages its affairs. That is, each is rewarded according to how much he produces. Remuneration increases as