Laffer curve

[ laf-er ]

nounEconomics.
  1. a relationship postulated between tax rates and tax receipts indicating that rates above a certain level actually produce less revenue because they discourage taxable endeavors and vice versa.

Origin of Laffer curve

1
1975–80; named after Arthur Laffer (born 1940), U.S. economist, who postulated it

Words Nearby Laffer curve

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British Dictionary definitions for Laffer curve

Laffer curve

/ (ˈlæfə) /


noun
  1. 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

Origin of Laffer curve

1
C20: named after Arthur Laffer (born 1940), US economist

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