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Journal of Political Economy Vol. 90 No. 4 1982

Politics, Time, and the Laffer Curve

James M. Buchanan; Dwight R. Lee

Abstract

Why should a rationally motivated political decision process generate an inverse relationship between tax rates and tax revenues? There would never seem a logical reason for increasing tax rates beyond maximum revenue limits. In this note, we explain how such a position can emerge and show why, once in such a position, political decision makers may find it difficult to escape.

Volume
90
Issue
4
Pages
816-819
Sources
bibtex:phds-export.bib

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