Definition of Laffer curve in English:

Laffer curve

Syllabification: Laf·fer curve
Pronunciation: /ˈlafər ˌkərv


  • A supposed relationship between economic activity and the rate of taxation that suggests the existence of an optimum tax rate that maximizes tax revenue.
    More example sentences
    • The theory of supply side economics and the Laffer curve drove federal marginal tax rates from 91% in 1963 down to 28% when Ronald Reagan left office.
    • Changes in tax rates shift the Laffer curves of competing tax jurisdictions.
    • Another area where the 1990s have proved supportive of progressive economics concerns supply-side economics and the Laffer curve.


1970s: named after Arthur Laffer (born 1940), American economist.

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