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 origin
C20: named after Arthur Laffer (born 1940), US economist
Laffer Curve in American English
(ˈlæfər)
US
[alsoL- c-]
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
Word origin
after A. Laffer (1940- ), U.S. economist, its originator