According to the Laffer Curve

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According to the Laffer Curve, there may exist two tax rates that deliver the same level of tax revenue. This is known as the "revenue equivalence theorem" and occurs when a decrease in tax rates increases the incentive to work and invest, leading to a larger tax base, while an increase in tax rates decreases the incentive to work and invest, leading to a smaller tax base. Ultimately, there exists a tax rate at which tax revenue is maximized, beyond which further increases in taxes will lead to diminishing tax revenue.