Laffer curve(redirected from Taxable income elasticity)
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Laf·fer curveor Laf·fer Curve (lăf′ər)
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.]
(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]
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|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|