Consider the Laffer curve for a hypothetical good as displayed in the graph shown. 
If the current tax rate is 90 percent: the quantity effect currently outweighs the price effect.the government could increase revenue by lowering the tax rate.deadweight loss will increase if the tax rate is lowered.
Definitions:
Carrying Value
The net book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.
Bond Discount
is the difference between the face value of a bond and its selling price when the bond is sold for less than its face value.
Straight Line Amortization
A method for calculating the periodic reduction in the carrying amount of an intangible asset, spreading the cost evenly over its useful life.
Par Value Bonds
Bonds issued with a fixed face value that is to be repaid at maturity, often different from their market value.
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