Laffer curve

Laf·fer curve or Laf·fer Curve  (lfr)

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.

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

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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

[named after Arthur Laffer (born 1940), US economist]

Thesaurus

Noun

1.

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