Labor supply curve showing hours worked at each wage rate. Red dot = current choice.
Laffer Curve showing total tax revenue at each tax rate. Revenue peaks at the revenue-maximizing rate.
Current Scenario Summary
| Parameter |
Value |
Notes |
| Pre-tax wage |
$8.00/hr |
Set by wage slider |
| Tax rate |
0% |
Set by tax slider |
| Take-home wage |
$8.00/hr |
Pre-tax × (1 − tax rate) |
| Hours worked |
6 hrs/wk |
From worker's labor supply function |
| Weekly earnings |
$48 |
Take-home wage × hours |
| Gov't tax revenue |
$0 |
Tax/hr × hours worked |
| Revenue-maximizing tax rate |
— |
Peak of Laffer Curve |