Download the BYJU'S Exam Prep App for free IAS preparation videos & tests - Download the BYJU'S Exam Prep App for free IAS preparation videos & tests -

When a country is on the downward sloping side of the Laffer curve, what will cutting tax rates do?

When a country is on the downward sloping side of the laffer curve, cutting tax rates will help in increasing the tax revenues. The tax revenues will be maximum at the optimal point of the Laffer curve. You can read about the Taxation System in India – Types, GST, VAT, Objectives, Limitation, Laffer Curve in the given link.

If the country was on the upward slope of the Laffer curve, cutting tax rates would have reduced tax revenues and increasing tax rates would have increased tax revenues till it reaches the optimal point of the Laffer curve.

Further readings:

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

Related Links

Tax Administration Reform Commission (TARC) – UPSC Notes for Indian Economy

General Anti-Avoidance Rule (GAAR) – Anti Tax Avoidance Law in India

Previous Years Economics Mains Questions for UPSC General Studies Paper – 3

Black Money, Tax-Evasion & Tax-Avoidance

Global Corporate Tax and India: RSTV- Big Picture

Topic-Wise GS 3 Questions for UPSC Mains

UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

CBDT – Central Board of Direct Taxes: Functions and Structure

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*