[Paleopsych] Ibn Khaldun and the Laffer curve
Lynn D. Johnson, Ph.D.
ljohnson at solution-consulting.com
Mon Apr 25 04:14:13 UTC 2005
In the early stages of the state, taxes are light in their incidence,
but fetch in a large revenue...As time passes and kings succeed each
other, they lose their tribal habits in favor of more civilized ones.
Their needs and exigencies grow...owing to the luxury in which they have
been brought up. Hence they impose fresh taxes on their subjects...[and]
sharply raise the rate of old taxes to increase their yield...But the
effects on business of this rise in taxation make themselves felt. For
business men are soon discouraged by the comparison of their profits
with the burden of their taxes...Consequently production falls off, and
with it the yield of taxation.
-- Ibn Khaldun, 1332-1406 C.E.
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