Noun
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
Source: WordNetTaken to its logical extreme, the Laffer curve makes no sense because, if you lower your taxes to zero, how are you going to get higher revenues? Jean Chrétien
I used the so-called Laffer Curve all the time in my classes and with anyone else who would listen to me to illustrate the trade-off between tax rates and tax revenues. Arthur Laffer
While discussing President Ford's ‘WIN' (Whip Inflation Now) proposal for tax increases, I supposedly grabbed my napkin and a pen and sketched a curve on the napkin illustrating the trade-off between tax rates and tax revenues. Wanniski named the trade-off ‘The Laffer Curve.' Arthur Laffer
A hypothetical Laffer curve for any given economy can only be estimated and such estimates are sometimes controversial. Source: Internet
Conversely, Republicans believed that by increasing the tariff, imports would be lessened, and total tariff revenue would drop (See Laffer curve ). Source: Internet
One potential result of the Laffer curve is that increasing tax rates beyond a certain point will become counterproductive for raising further tax revenue. Source: Internet