Arthur Laffer
Arthur Laffer · Laffer
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United States economist who proposed the Laffer curve (born in 1940)
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Laffer
Arthur Laffer
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One potential result of the Laffer curve is that increasing tax rates beyond a certain point will become counterproductive for raising further tax revenue.
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The Laffer Curve.
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The Laffer curve is typically represented as a graph that 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.
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The Laffer Curve is an economic theory that shows the relationship between tax rates and the amount of tax revenue collected by governments.
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Arthur Laffer, for whom the Laffer curve is named, acknowledged that Ibn Khaldun's ideas, as well as others, precede his own work on that curve.
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A hypothetical Laffer curve for any given economy can only be estimated and such estimates are controversial.
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The Laffer curve assumes that no tax revenue is raised at the extreme tax rates of 0% and 100%, and that there is a rate between 0% and 100% that maximizes government taxation revenue.
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