A report on Tax and Economic rent

Total revenue from direct and indirect taxes given as share of GDP in 2017

Pieter Brueghel the Younger, The tax collector's office, 1640

Substitution effect and income effect with a taxation on y good.

Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.

The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.

General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.

Egyptian peasants seized for non-payment of taxes. (Pyramid Age)

Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.

Diagram illustrating deadweight costs of taxes

This distinction has important implications for public revenue and tax policy.

- Economic rent

Georgist economists argue that all of the economic rent collected from natural resources (land, mineral extraction, fishing quotas, etc.) is unearned income, and belongs to the community rather than any individual.

- Tax

A report on Tax and Economic rent

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