The Laffer curve as a parameter of confiscatory taxation
While individual action is subject to the rule “everything which is not forbidden is allowed”, public authorities are subject to the converse principle. Therefore, this precept demands the establishment of concrete criteria of confiscatory taxation. Otherwise (i.e. considering confiscation an “indet...
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| Formato: | Artículo revista |
| Lenguaje: | Español |
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Facultad de Derecho
2018
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| Acceso en línea: | https://revistas.unc.edu.ar/index.php/nomeniuris/article/view/21364 |
| Aporte de: |
| Sumario: | While individual action is subject to the rule “everything which is not forbidden is allowed”, public authorities are subject to the converse principle. Therefore, this precept demands the establishment of concrete criteria of confiscatory taxation. Otherwise (i.e. considering confiscation an “indeterminate legal concept”), excessively discretionary powers are conceded to the State. It then follows that the legal scholar has a duty to explore indicators of confiscatory taxation in order to limit the abusive behavior of the State. Drawing from this notion, this paper argues that it is possible to determine whether a tax is confiscatory through the empirical estimation of the Laffer curve. Concretely, we argue that there is a presumption of confiscatory taxation whenever a tax’s effect is situated to the right of the revenue-maximizing point of the curve. This is a consequence of the rationality of taxation and the social function of the right to private property. However, if the effect is located to the left of such point, this constitutes no demonstration of non-confiscatory taxation. |
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