Ibn Khaldun's Laffer Curve

Low Taxes

Encourage work and increase government revenue.

High Taxes

Discourage work and reduce government revenue.

Tax Avoidance

Strategies to evade paying taxes legally.

Dynasty

A government period characterized by its integrity.

Economic Growth

Increase in economic activity and prosperity.

Ibn Khaldun

Pioneer in tax theory and economic thought.

Laffer Curve

Illustrates optimal tax rate for maximum revenue.

Optimal Tax Rate

Tax rate balancing revenue and economic activity.

Corruption in Government

Leads to increased taxes and reduced revenue.

Cultural Prosperity

Flourishing culture resulting from economic growth.

Revenue Collection

Total money collected by the government from taxes.

Government Honesty

Integrity in governance promoting low tax rates.

Economic Activity

Business operations that contribute to the economy.

Motivation to Earn

Desire to work hard when taxes are low.

Tax Burden

Feeling of excessive taxation impacting work effort.

Business Investment

Capital allocation to start or grow businesses.

Trade Encouragement

Stimulating commerce through favorable tax conditions.