Laffer curve


Also found in: Thesaurus, Financial, Wikipedia.

Laf·fer curve

or Laf·fer Curve  (lăf′ər)
n.
A curved graph that illustrates the theory that, if tax rates rise beyond a certain level, they discourage economic growth, thereby reducing government revenues.

[After Arthur Laffer (born 1940), American economist.]

Laffer curve

(ˈlæfə)
n
(Economics) economics a curve on a graph showing government tax revenue plotted against percentage tax rates. It has been used to show that a cut in a high tax rate can increase government revenue
[C20: named after Arthur Laffer (born 1940), US economist]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.Laffer curve - a graph purporting to show the relation between tax rates and government income; income increases as tax rates increase up to an optimum beyond which income declines
graph, graphical record - a visual representation of the relations between certain quantities plotted with reference to a set of axes
References in periodicals archive ?
com/895785/laffer-curve-everything-trump-and-republicans-get-wrong-about-trickle-down-economics-and-reaganomics/) Laffer Curve " based on the relationship between tax rates and tax revenue that gave birth to Reagonomics.
As the Wikipedia entry, for example, puts it, "The Laffer curve is one of the main theoretical constructs of supply-side economics.
They'd fall off what economists call the Laffer curve, which is not a joke but the point on the graph when higher taxes result in a lower tax yield.
The well-known Laffer curve theory suggests that lower tax rates increase productivity and generate significant government revenues.
The well- known Laffer curve theory suggests that lower tax rates increase productivity and generate significant government revenues.
It seems that the Laffer Curve is alive and kicking in Britain.
2013), The sociological theory of fiscal illusion and the Laffer curve.
These reductions can lead to a bell-shaped relationship between tax rates and government revenue known as the Laffer curve (for an example, see Figure 1).
We would be on the "wrong" side of the Laffer Curve, and that would be a good thing.
The Reagan tax cuts in 1981 were premised on the US economy being at this downward-sloping range of the Laffer curve, such that lowering tax rates would actually increase revenues.
He discusses whether the Laffer Curve (3) is true or false, and discusses the economic proposals of John Maynard Keynes, explaining that Keynes was focused on unsticking markets.
He partnered with Art Laffer, of Laffer Curve fame, who posited that excessive tax rates would reduce government revenues rather than increase them.