The Arthur Laffer Curve is another tool to explain the effects of tax fairness. The research focuses on the Arthur Laffer Curve. The research touches on the Tax Fairness Proposal. The Laffer Curve is an important technique to determine the optimum tax rates. Arthur Laffer Curve Stephen Slavin (125) emphasizes that the government continues to expand its ways and means of maxising resources. Tax collection is one of those excellently managed revenue generating activities. The Arthur Laffer curve indicates that there exists a minimum of one income tax rate where the tax revenue will be maximized. The Laffer curve is typically represented as a stylized graph that begins at the zero rate and ends at the 100 percent rate. There are also several curves that comply with these boundary limitations. There is little that can be stated without giving out some theories or empirical statistical information. The disadvantage of the Laffer curve shows that the increase in the tax rates will become too unbearable to the paying individuals and business people. In the same way the tax rate of 100 percent would discourage to the people from working. The people would feel it is useless to work because the government will get every penny of the person’s total wages. The Laffer curve shows that the tax rate increase will result to a diminishing return both the government and the companies being taxed at burdensome levels. The people will surely decrease their interest to work harder if they are taxet at 85 percent or 90 percent of their total earnings. On the other hand, the government will stand to loss public funds if the government taxes income using a one percent or two percent rate based on the company’s net income. There are different opinions or biases on the optimum revenue maximizing tax rates. On the government side, a higher tax rate would be favorable because it would increase the government’s tax revenues. On the other side of the coin, the tax papers would prefer a lower tax rate. A lower tax rate would precipitate to higher cash on hand. The companies need the higher cash on hand assets in order to pay for the daily operating expenses of the government. Fair Tax Proposal The Fair Tax Proposal is a primary tax proposal that would take the place of all major tax sources imposed by the United States government. The tax sources include federal taxes on personal profits and income from corporate activities. The new tax proposal, Fair Tax, one solo wide national consumption tax on retail sales will be implemented. The Fair Tax Act (H.R. 25) will be imposed on all goods and services during the time of sale. The proposal calls for payment within every 60 days for all family homes or residents living within the territory of the United States. The new tax is likened to a rebate. The rebates are allowed on people falling within the poverty level. Many groups have rallied behind the approval of the new proposed tax law, Fair Tax Law. Specifically, Georgia’s Congressman John Linder. The Fair Tax reference had been published in 2005. The Fair Tax Proposal was one of the 2008 United States Presidential elections. Specifically, the new sales tax pegs a 23 percent tax rate on all payments or received paid for in a grocery store, merchandise store, mall, restaurant, and other places where money or money assets