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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

/ ˈæə /

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
“Collins English Dictionary — Complete & Unabridged” 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
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Word History and Origins

Origin of Laffer curve1

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

Origin of Laffer curve1

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

Examples have not been reviewed.

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

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

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

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He argued with an easy-to-understand graph — the Laffer curve — that as tax rates go down, government revenue goes up.

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

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