Laffer Curve/
Reagonomics/
Trickle-down/
Universal B.I.

After observing that zero taxes give the government zero and 100% taxes make the incentive to work zero, the curve shown was sketched.

In a two-party system, political combatants shout "tax the rich; redistribute the wealth" or "all taxes do is kill jobs". Nobody acts as a referee considering the whole curve.


Economics 101 Study Diary.
Supply/Demand/CPI


Embedded are "client side" slider programs:
'. slydrBox(' Elasticity',"","hokum","testSlider(this)"). '12.34
WARNING: X and Y multipliers work differently below.

Try changing tax rates below to explore what "perturbation theory" reveals about the shape of the Laffer Curve near actual 2024 conditions:
Inflation was 2.4%/yr, prime interest rate was 7.5%/yr, unemployment was 6.7% and Supply and Demand both equaled GDP of $2241 Billion. GDP growth rate has been near 2%/yr.



Shifting Capital to The GST
to Implement
Universal Basic Income.

The proposal - expand the $2100 Billion holdings of capital in
Canadian Pension Plans so dividend/interest income will reduce the current 10 to one income disparity to 4 to one. qwrty You may shift capital above, and you may add/subtract a portion of these taxes: bottHalf midThrd topTier
GDP Growth: 0.0% Inflation 3.0%/yr
corpTax otherTax
Total revenue: 543.21[%543.21Bn 2024].
Some capital will shift away from already-wealthy taxpayers, but there will be " more demand" - buyers have more to spend. UBI Capital operates Supply-Side instead of "tax and spend".


The above sliders shift taxation, giving these percentage changes to the
  • Supply 0%
  • or Demand 0%
    for one percent change in the price.

    The Supply and Demand elasticities below multiply the effect:
    (%Quantity change / %Price change).
    GDP will respond by 0%
    (Supply and Demand equalize): dmndElasty splyElasty
    GDP Growth: 0.0% Inflation 3.0%/yr
    keyRate

  • Corporate Taxation:
    This multiplier selects the percentage drop in Supply for one percent rise in corporate taxes. (You set that with the Corporate Tax slider above.) corpTaxElasty
    The Big Three: Land & Resources(>$19Tn)
    The Big Three: Labor & Skillsets
    laborElasty
    The Big Three: Capital & Machinery
    capMachineElasty
    GDP Growth: 0.0% Inflation 3.0%/yr
    Make It Four: Entrepreneurship
    entrprnrshpElasty
    Algorithm Log: Average initial gross income = $aveGross
    . . . . . . . . . . . . .