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
WordReference Random House Unabridged Dictionary of American English © 2025
Laf′fer curve′
(laf′ər),USA pronunciation [Econ.]
- Economics, Businessa 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.
- named after Arthur Laffer (born 1940), U.south, southern. economist, who postulated it 1975–80
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