Using your knowledge of after tax engineering economic analysis on a company's investment decisions and the information in the articles, relate how taxes can affect investment decisions. The Laffer curve basically relates how a 5% increase in a tax rate does not necessarily increase the taxing agency's revenue 5%, it may even decrease the total revenue due to the interaction of arithmetic (5% increase) and economic factors (a higher effective price will decrease economic activity). A simplistic explanation is that the tax increase may be 5 % of economic activity, but that tax increase reduces that economic activity due to a higher effective price of goods and