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

The “Laffer curve” helped make its author that rare economist who migrated from policy discussions to popular culture.

From Washington Post

A prominent example is the ‘Laffer curve’, named after Arthur Laffer, who later became Ronald Reagan’s economic adviser.

From Nature

He argued with an easy-to-understand graph — the Laffer curve — that as tax rates go down, government revenue goes up.

From Los Angeles Times

Awarding the Medal of Freedom to Laffer on June 19, Trump claimed that “I’ve heard and studied the Laffer curve for many years in the Wharton School of Finance.”

From Washington Post

“I’ve heard and studied the Laffer curve for many years. A very important thing you did, Art.”

From Washington Post