RealClearMarkets - Goat Economics: Why the Laffer Curve Is No Joke: "Since raising goats is a rather simple economic activity, it is easy to model the impact of taxation on goat farming. Assuming the government comes and takes various numbers of the new goats (income) each year in goat taxes, one can easily calculate the impact of the size of the herd, and ultimately how much total revenue the government would receive over 10 years at various tax rates. It turns out that the optimum tax rate is in the 20-30% range to maximize total 10 year revenue.
The reason the tax revenue drops above a 30% rate is simple. If the government takes more new goats in taxes, the goat farmer has fewer goats to breed the following year."
It's rocket science I tell ya...
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