Definitions for laffer curve
laf·fer curve

Princeton's WordNetRate this definition:0.0 / 0 votes

1. Laffer curvenoun

   a graph purporting to show the relation between tax rates and government income; income increases as tax rates increase up to an optimum beyond which income declines

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1. laffer curve

   The Laffer Curve is an economic theory that proposes the relationship between tax rates and the amount of tax revenue collected by governments. It suggests that, as taxes increase from zero, the government's tax revenue increases; however, at a certain point, if taxes continue to increase, the total revenue begins to decrease due to lower economic activity or tax evasion. The curve is named after economist Arthur Laffer, who proposed it. The most effective tax rate, therefore, is somewhere in the middle, representing the peak of the curve.

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1. Laffer curve

   In economics, the Laffer curve is a representation of the relationship between possible rates of taxation and the resulting levels of government revenue. It illustrates the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation. It postulates that no tax revenue will be raised at the extreme tax rates of 0% and 100% and that there must be at least one rate where tax revenue would be a non-zero maximum. The Laffer curve is typically represented as a graph which starts at 0% tax with zero revenue, rises to a maximum rate of revenue at an intermediate rate of taxation, and then falls again to zero revenue at a 100% tax rate. The actual existence and shape of the curve is uncertain and disputed. One potential result of the Laffer curve is that increasing tax rates beyond a certain point will be counter-productive for raising further tax revenue. A hypothetical Laffer curve for any given economy can only be estimated and such estimates are controversial. The New Palgrave Dictionary of Economics reports that estimates of revenue-maximizing tax rates have varied widely, with a mid-range of around 70%. Although economist Arthur Laffer does not claim to have invented the Laffer curve concept, it was popularized with policymakers following an afternoon meeting with Ford Administration officials Dick Cheney and Donald Rumsfeld in 1974 in which he reportedly sketched the curve on a napkin to illustrate his argument. The term "Laffer curve" was coined by Jude Wanniski, who was also present at the meeting. The basic concept was not new; Laffer himself notes antecedents in the writings of Ibn Khaldun and John Maynard Keynes.

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How to pronounce laffer curve?

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Numerology

1. Chaldean Numerology

   The numerical value of laffer curve in Chaldean Numerology is: 4

2. Pythagorean Numerology

   The numerical value of laffer curve in Pythagorean Numerology is: 9

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=laffer curve
2. ^ ChatGPT
   https://chat.openai.com
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=laffer curve