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 as a system whereby the laborer receives the full product of his labor through the elimination of exploitation and accrual of unearned income to a capitalist class. The term means simply that each worker in a socialist society receives compensation and benefits according to the quantity and value of the labor that he or she contributed. This translates into workers of high productivity receiving more wages and benefits than workers of average productivity, and substantially more than workers of low productivity. An extension of this principle could also be made so that the more difficult one's job is—whether this difficulty