- 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
1975–80; named after Arthur Laffer (born 1940), U.S. economist, who postulated it
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2018
- 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
C20: named after Arthur Laffer (born 1940), US economist