A curved graph that illustrates the theory that, if tax rates rise beyond a certain level, they discourage economic growth, thereby reducing government revenues.
A graph illustrating a theory which maintains that increasing tax rates beyond a certain point causes a reduction in government revenues by discouraging production and investment.
A key underpinning of supply-side economics that says that tax cuts produce non-inflationary economic growth and increase productivity. The theory derives its name from economist Arthur Laffer.
Origin of laffer-curve
- After Arthur Laffer (born 1940), American economist
From American Heritage Dictionary of the English Language, 5th Edition