Laffer curve

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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 ?
The taxable income elasticity of high-income taxpayers: Evidence from a long panel, Retrieved from http://papers.
taxable income elasticity literature has focused on the 1980s tax cuts.
2) Note, though, that (as has been argued in the taxable income elasticity literature, including my own work) both avoidance and wealth accumulation channels entail similar short-term efficiency costs, although the longer-term implications are likely very different.
However, his aim is not to add to that debate, but rather to apply the methodology that others have used for 1986 to five other major tax reforms between 1920 and 1975 in order to see what they suggest about the magnitude of the taxable income elasticity.