Modeling Optimal State Taxation Dynamics via the Laffer Curve Framework

"This quantitative research paper constructs a sub-national public finance framework to model optimal state indirect taxation boundaries via the Laffer Curve hypothesis. While traditional fiscal literature focuses primarily on macro-level direct national tax structures within western markets, this study bridges a major regional gap by evaluating how state-level indirect tax updates—specifically State GST (SGST) compliance matrices and input tax credit parameters—interact with revenue expansion capacities inside active urban trade hubs. Sourced via the Commercial Tax Department of Gujarat and NITI Aayog dashboards, the project models a 5-year data matrix to track sectoral revenue extractions and vendor compliance logs. The framework uses statistical modeling to calculate revenue elasticity constraints, ensuring the local tax architecture maximizes capital provision for public infrastructure without triggering economic contraction or deadweight welfare losses."