61 Management – Marketing - Tourism MANAGEMENT MODEL OF THE CORRELATION BETWEEN THE RATE OF TAX PRESSURE AND THE FLOW OF INLAND REVENUE.THE LAFFER CURVE Assoc. Prof. Marius Mitrache Ph.D Mirela Ganea Ph.D. Student University of Craiova, Faculty of Economics and Business Administration, Craiova, Romania Abstract: The adaptation to the Romanian macroeconomic realities of the theory according to which an increase in the tax pressure will not necessarily entail the corresponding increase of the Inland Revenue, but in exchange, the decrease of the tax pressure will create favorable conditions for the increase of the inland revenue, implies the creation of correlative models to support the idea and to provide a proper management at macroeconomic level. Such a model is the one using as statistic instrument the Laffer Curve starting from the concrete data of Romanian economy. Key words: Rate of tax pressure, normal range, prohibitive range, Inland Revenue, fiscal facilities The theoretic basis of the Laffer law Using as analysis base the market economy in the U.S.A. also influenced by mathematic reasoning, the American economist Arthur B. Laffer renders evident, through a curve, the connection between the rate of tax pressure and the flow of the inland revenue, currently known as The Laffer Law. This rapidly became the theoretic ground and the reference basis for theorists of the offer economy. Analyzing the relation between the tax pressure and the inland revenue, in the work intitled “Taxation, GNP and Potential GNP, proceeding of the business and economics statistics sections” 6 , A. Laffer together with V.A. Canto and D.H. Joines have reached the conclusion that an increase of the tax pressure will not necessarily entail the corresponding increase of the inland revenue, but in exchange, the decrease of the tax pressure will create favorable conditions for the increase of the inland revenue. This conclusion was based on a mathematic reasoning for which the capital and the labor are rewarded depending on the incremental revenue:     1 xM K P , (1) where 0 <  < 1 6 Human Rights Report – the basis of electronic information including statistics refering to various economic and statistic indicators, http://www.cato.org/pubs/journal/cj1n1/cj1n1-1.pdf