Laffer Curve
A theory, invented by Arthur Laffer, which determines the relationship between tax rate level and revenue that government will collect at that level.
Laffer’s starting point is: the more the government collects from the people, the people will work less hard, or if the government collects it all, the people will not work at all, because the government takes all of their earnings.
So, the Laffer Curve determines the point at which the government collects maximum tax revenue while people continue to work hard and pay taxes.
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