Laffer curve

American

[laf-er] / ˈlæf ər /

noun

Economics.

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.

Laffer curve British

/ ˈlæfə /

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of Laffer curve

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

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

Laffer curve

The optimal tariff is the top of an inverted-U curve of options, similar in shape to the Laffer curve.

From The Wall Street Journal ● Jun. 26, 2026

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

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Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023