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According to this article, (spanish only)

Argentine companies pay 106% of taxes for their revenues

Supposedly the Laffer curve is different from country to country. Which are the tax rate values at which you get the maximum tax revenue for Argentina? Also, is this curve supposedly to be applied to the overall taxes paid by a company, or for the taxes over a particular manufactured product?

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    $\begingroup$ I don’t know data on laffer curve for Argentina- but usually its peak turns out to be when taxation is around 70-80%. Also, any tax rate above 100% cannot be optimal but I have serious doubts that is even the case - if it is above 100% of revenue why do the firms even exist? That means that for every single product company makes it has to give all revenue (which does not include cost as revenue is just price times quantity) to the gov and then on top of giving all revenue to the gov the firm must even pay something extra - how can firms exist in such case? Surely that must be a mistake $\endgroup$
    – 1muflon1
    Nov 19, 2020 at 14:16
  • $\begingroup$ I suppose it's an average, the article says the companies need an inmediate reduction to survive. $\endgroup$
    – Pablo
    Nov 19, 2020 at 14:21
  • $\begingroup$ Also, thousands of companies went bankrupt in the last years. Not a surprise I guess. I remember in 2016 , 5000 companies disappeared in 3 months. $\endgroup$
    – Pablo
    Nov 19, 2020 at 14:23
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    $\begingroup$ hmm I would really want to see that analysis because you cannot just add two different tax rates let’s say VAT 20% and income tax 30% and say that is 50% taxation... this to me looks like they were just adding some corporate taxes together otherwise I can’t explain how they would arrive at such tax rate given what I saw in that Deloitte report... that number just seems very fishy, is that liberty and progress foundation reputable? Are they known for some ideological biases that would make them want exaggerate extent of taxation in Argentina? $\endgroup$
    – 1muflon1
    Nov 19, 2020 at 14:48
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    $\begingroup$ By "revenues" you mean "profits"? $\endgroup$ Nov 19, 2020 at 14:48

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