Laffer curve

[ laf-er ]

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.

Laffer curve

/ 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

Word History and Origins

Origin of Laffer curve¹

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

Word History and Origins

Origin of Laffer curve¹

C20: named after Arthur Laffer (born 1940), US economist

Example Sentences

The implication is that there’s a kind of “Laffer curve” of mass slaughter whose benefits are waiting to be enjoyed.

From Washington Post

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

From Washington Post

There is no consensus on whether the Laffer curve is accurate — even some leading conservative economists, such as Gregory Mankiw, are critical.

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

There are endless arguments about the Laffer curve, which purports to show where this level lies.

From The Guardian