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Laffer Curve Formula

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Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers. Check FAQs
R=tax⋅Tb
R - Revenue?tax - Tax Rate?Tb - Taxable Base?

Laffer Curve Example

With values
With units
Only example

Here is how the Laffer Curve equation looks like with Values.

Here is how the Laffer Curve equation looks like with Units.

Here is how the Laffer Curve equation looks like.

128000Edit=8Edit⋅16000Edit
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HomeIcon Home » Category Financial » Category Public Finance » fx Laffer Curve

Laffer Curve Solution

Follow our step by step solution on how to calculate Laffer Curve?

FIRST Step Consider the formula
R=tax⋅Tb
Next Step Substitute values of Variables
∴ R=8⋅16000
Next Step Prepare to Evaluate
∴ R=8⋅16000
LAST Step Evaluate
∴R=128000

Laffer Curve Formula Elements

Variables
Revenue
Revenue is the income that a business has from its normal business activities, generally from the sale of goods and services to customers.
Symbol: R
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find RevenueOpen Variable
Tax Rate
The Tax Rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.
Symbol: tax
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Tax RateOpen Variable
Taxable Base
Taxable Base refers to the portion of an individual's or entity's income, profit, property value, or other financial measure that is subject to taxation by the government.
Symbol: Tb
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Taxable BaseOpen Variable

Other formulas in Public Finance category

​Go Tax Incidence for Customers
TI=100⋅(ESED+ES)
​Go Tax Incidence for Producers
TI=100⋅(EDED+ES)
​Go Tax Burden for Customers
TBr=ESED+ES
​Go Tax Burden for Suppliers
TBr=EDED+ES

How to Evaluate Laffer Curve?

Laffer Curve evaluator uses Revenue = Tax Rate*Taxable Base to evaluate the Revenue, The Laffer Curve formula visually shows the relationship between tax rates and the amount of tax revenue collected by governments. Revenue is denoted by R symbol.

How to evaluate Laffer Curve using this online evaluator? To use this online evaluator for Laffer Curve, enter Tax Rate (tax) & Taxable Base (Tb) and hit the calculate button.

FAQs on Laffer Curve

What is the formula to find Laffer Curve?
The formula of Laffer Curve is expressed as Revenue = Tax Rate*Taxable Base. Here is an example- 128000 = 8*16000.
How to calculate Laffer Curve?
With Tax Rate (tax) & Taxable Base (Tb) we can find Laffer Curve using the formula - Revenue = Tax Rate*Taxable Base.
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