კონფერენცია

∘ Ilia (Aziko) Sisvadze ∘
OPTIMIZATION OF TAX CARGO TAKING INTO CONSIDERATION THE SCALE EFFECTS AND DELAY

Summary

In the paper it is justified that the traditional curve depicting the Lafer law and the corresponding square parabola function can not fully reflect actual fiscal processes. Because of the change in tax rates is characterized by delayed effects, budget tax revenue will rise not at the initial moment, but gradually, and when it comes to 100%, it will also decrease at a slow pace. This attitude is described by different functions in accordance with the scale effect.

The function and curve depicting the analytical dependence varies substantially in terms of partial optimization of taxes when it has both maximums and minimum points. Without taking into consideration this factor, is explained the fact that tax reforms based on the Lafer Law can not provide the desired result.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Ilia (Aziko) Sisvadze ∘ OPTIMIZATION OF TAX CARGO TAKING INTO CONSIDERATION THE SCALE EFFECTS AND DELAY Summary In the paper it is justified that the traditional curve depicting the Lafer law and the corresponding square parabola function can not fully reflect actual fiscal processes. Because of the change in tax rates is characterized by delayed effects, budget tax revenue will rise not at the initial moment, but gradually, and when it comes to 100%, it will also decrease at a slow pace. This attitude is described by different functions in accordance with the scale effect. The function and curve depicting the analytical dependence varies substantially in terms of partial optimization of taxes when it has both maximums and minimum points. Without taking into consideration this factor, is explained the fact that tax reforms based on the Lafer Law can not provide the desired result.