Can't analyze it graphically. Making a function would be much too complex (involving understanding every person indifference curves according to their work:money-earned [after tax] ratio) and estimating on empirical evidence would require changing the tax rate a bunch of times and seeing how it effects revenue in both the public and private sector. Then you'd need to make sure changing the tax rate did not change the structure of the economy so that the data gained from that tax rate is still valid.
Slashdot Mirror
Can't analyze it graphically. Making a function would be much too complex (involving understanding every person indifference curves according to their work:money-earned [after tax] ratio) and estimating on empirical evidence would require changing the tax rate a bunch of times and seeing how it effects revenue in both the public and private sector. Then you'd need to make sure changing the tax rate did not change the structure of the economy so that the data gained from that tax rate is still valid.