The Laffer curve seems to be a ratio of tolerance of arbitrary impositions by others. That tolerance must be graduated by the return those impositions yield.
Example: I am ok paying X taxes because this place at least gives me Y benefits.
Thinking more broadly about “tolerance” levels, I think there are several things that may condition them, or that make a system more or less effective at providing sufficiently palatable returns:
1. Population size: If a nation is a few million, the dynamics of taxation and regulation may be easier in terms of providing a positive return to individuals than populations in the hundreds of millions or billions.
2. Culture: A culture of respecting rules and taxation is easier than a culture of cheating and hiding.
3. Diversity: A nation where one ethnic group is dominant is more coordinated than several groups applying their own interpretation and values to national organization.
4. External resources: A nation that digs a hole and extracts oil at a very low cost has more resources to increase regulation or impositions in general as it can pay for a lot of benefits to individuals to compensate for an arbitrary system.
5. Exit costs: A place where it is easy to exit, it is difficult to increase impositions.
Of course reality is much more complex!
