Laffer curve

Noun

Meaning

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

Hypernyms

Examples

Taken 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

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