Exploration of taxation levels in Ecuador using the Laffer curve during the period 2015-2020.

Abstract

This study analyzes the Laffer curve for Value Added Tax (VAT) and Income Tax (IR) in Ecuador during 2015-2020, periods of maximum collection. The objective is to determine the optimal rates that allow adequate tax revenues without harming economic agents. Using a documentary and quantitative-descriptive approach, regression and linear-logarithmic correlation and quadratic function analyses were applied. The models proved to be logical and statistically significant, generating individual Laffer curves and lower optimal rates than those applied. A reduction of VAT and IR rates is suggested to maximize tax revenues.