ECO 202 Criticism of Laffer Curve
The gains or negatives of decreasing one tax may be affected or even canceled out by raising
another due to the complexity of the tax structure. The Laffer curve oversimplifies the
connection between taxes by imposing a single tax rate. Assumptions: The Laffer curve states
that higher taxes result in lower revenues because firms may elect to depart and employees may
choose to work fewer hours. To progress their careers, workers could, however, put in more time
or effort. When making selections, businesses look for quality personnel and infrastructure in
