What are the criticisms of the Laffer Curve?

Some of the criticisms of the Laffer curve are, it makes very simplistic assumptions, revenue may well be a multivalued function of tax rate which is not considered in the Laffer curve. It does not take into account tax avoidance. These are some of the criticisms of the Laffer curve. You can read about the Taxation System in India – Types, GST, VAT, Objectives, Limitation, Laffer Curve in the given link.

Further readings:

  1. Global Minimum Corporate Tax – Minimum tax rate proposed by the G7
  2. Base Erosion and Profit Sharing

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