According to trabant and uhlig-laffer curve for consumption

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Reference no: EM13838546

According to Trabant and Uhlig (2009), the Laffer curve for consumption has no peak.

As far as I can make out, the argument is based on the fact that money extracted by taxing consumption ends up back with consumers and then gets taxed again. However I don't understand why the standard idea that taxes deter activity doesn't create a peak.

Reference no: EM13838546

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