NationStates Jolt Archive

http://www.polyconomics.com/searchbase/02-12-99.html

The Laffer curve shows us that as taxes go up, revenue goes up, but only to a certain point. After this point, people realize the government is taking too much and they decide their time is worth more, they can work around the house, do work that isn't declared, or grow their own food. The point being that nobody is willing to pay 100% taxes and few are willing to pay probably anything over 90%

People will just simply stop working once the rates get too high.

CHardonay, though it says we have a 100% tax rate, it really doesn't. That's just a way of simulating the immense government influence in people's daily lives.

In communist countries you could make it pass like you reached true communism, no one handles any money; they just take what they need. :)