Laffer-curve definition

lăfər
A curved graph that illustrates the theory that, if tax rates rise beyond a certain level, they discourage economic growth, thereby reducing government revenues.
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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.
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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.
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Origin of laffer-curve

  • After Arthur Laffer (born 1940), American economist

    From American Heritage Dictionary of the English Language, 5th Edition