Theory of optimal Tax rate
A theory & a mathematical equation using calculus to double the size of collected taxes by applying a tax rate below 6%
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Undoubtedly, the issue of optimum tax rate is of crucial importance to both government and tax-payers. In this book, the author tries to answer the interesting question of whether should we apply a big tax rate or a small tax rate and discusses the various parameters involved in the process of tax application and arrives at an optimum tax rate for a given number of years of tax application that maximizes the size of collected taxes on the long run and allows tax-payers to pay less taxes. The author derives the optimum tax rate based on the application of calculus as he gets the maximum size of...
Undoubtedly, the issue of optimum tax rate is of crucial importance to both government and tax-payers. In this book, the author tries to answer the interesting question of whether should we apply a big tax rate or a small tax rate and discusses the various parameters involved in the process of tax application and arrives at an optimum tax rate for a given number of years of tax application that maximizes the size of collected taxes on the long run and allows tax-payers to pay less taxes. The author derives the optimum tax rate based on the application of calculus as he gets the maximum size of the collected taxes and the optimum tax rate given the initial capital of the project, the annual profit, the annual project cost and the number of years of tax application or the project lifetime.
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