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Laffer curve Line breaks: Laf¦fer curve
Pronunciation: /ˈlafə/

Definition of Laffer curve in English:


A supposed relationship between economic activity and the rate of taxation which suggests that there is an optimum tax rate which maximizes tax revenue.
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 1942), American economist.

Definition of Laffer curve in:
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