Using your knowledge of after tax engineering economic


Using your knowledge of after tax engineering economic analysis on a company's investment decisions and the information in the articles, relate how taxes can affect investment decisions. The Laffer curve basically relates how a 5% increase in a tax rate does not necessarily increase the taxing agency's revenue 5%, it may even decrease the total revenue due to the interaction of arithmetic (5% increase) and economic factors (a higher effective price will decrease economic activity). A simplistic explanation is that the tax increase may be 5% of economic activity, but that tax increase reduces that economic activity due to a higher effective price of goods and services, so the 5% increase taxes a lower base revenue and that lower base revenue is caused by the higher tax rate.

Write your analysis of the articles and their possible effects on private investment versus government revenue. You may restrict your analysis to Federal taxes only. Keep in mind, this is an economic theory only and, as such, can not be definitely proved or disproved. There are other opinions on the matter and you are encouraged to explore alternate views.

You are encouraged to use outside sources (references) to back up your points. You may use no more than 3 pages for your essay (excluding references). Edit your paper to achieve economy of words, but depth of analysis.

Use of external resources is strongly encouraged!!!

Read the following two articles
https://www.laffercenter.com/the-laffer-center-2/the-laffer-curve/
https://www.heritage.org/research/reports/2004/06/the-laffer-curve-past-present-and-future

Write your view in 1200 Words

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