Comparative Analysis Between Capital and Liability – Sensitivity Method

This paper is about the comparison of capital and liability in the tax system. The results show that capital and liability increase tax revenue. The applied methodology stands on the S.M. (Sensitivity Method) where the comparison between the capital and liability happens through diagrammatic analysis. The mathematical background and the theory of the money cycle specify the behavior of these variables. The objective of this work is to reveal the interaction between these variables. The scope of the paper is to confirm the behavior of the theory of the Cycle of Money considering these variables.