A supposed relationship between economic activity and the rate of taxation that suggests the existence of an optimum tax rate that maximizes tax revenue.
- 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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Syllabification: Laf·fer curve
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