00:01
So let's think about the laver curve before we do any calculations to make sure that we're calculating the right thing.
00:06
The lapper curve is a relationship between little t, the tax rate, and big t tax revenue, right? that says, look, if you tax at zero percent, you get zero revenue.
00:21
If you tax at 100 percent, you should also get zero revenue because of the infinite disincentives.
00:26
And so we should get some sort of parabolic type thing like this.
00:32
So here we're looking at the slope.
00:35
What is the slope of this curve, right? the slope is equal to the change in revenue, right? that's the y axis, which is my sort of change in y over the change in the rate, which is equal to sort of delta x.
00:53
So we know that the rate here is going.
00:57
Going from 30 to 20%, but we don't know about the revenue, right? or sorry, we do know about the revenue.
01:07
We know, sorry, we don't know the revenue...