Laffer curve

American  

[laf-er] / ˈlæf ər /

noun

Economics.

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.

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Laffer curve British  

/ 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

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Etymology

Origin of Laffer curve

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

Example Sentences

Arnett, now known as Grace-Marie Turner, said she recalled the moment vividly because she had never seen the Laffer curve before, and she found it illuminating.

From Seattle Times • Oct. 13, 2017

More than 40 years after those scribblings, President Trump is reviving the so-called Laffer curve as he announces the broad outlines of a tax overhaul on Wednesday.

From New York Times • Apr. 25, 2017

So it sort of was not the anniversary of the Laffer curve in December.

From Forbes • Jan. 15, 2015

The Laffer curve eventually slopes downward, of course.

From Economist • Dec. 16, 2013

Indeed, there are echoes of the Laffer curve in Wong's proposal: allowing individuals to keep more of their winnings may actually maximize overall revenues.

From Time Magazine Archive