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Politics, Time, and the Laffer Curve

James M. Buchanan; Dwight R. Lee

Journal of Political Economy 1982

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.

DOI
10.1086/261091
Volume
90 (4)
Pages
816-819
Language
en
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