Laffer curve

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Laf·fer curve

or 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.]
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Laffer curve

(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]
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
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
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
The intersection (or tangency) points of these curves with y[??] curve provide us with different tax yield (T) levels, which are shown in Part D of the figure and as a result a parabolic curve is obtained, which is known as Khaldun-Laffer curve in economics literature.
Similarly the part of the Ibn Khaldun-Laffer curve lying to the right of line [t.sub.1] [t.sub.j] is also inoperative because an Islamic state is not allowed to transgress the limits of justice.
Policy implications of Ibn Khaldun-Laffer curve, according to the view of western economists are, that in order to achieve maximisation of tax revenue the government should go on increasing the tax rates if the elasticity of tax revenue with respect to tax rates (i.e.