laffer curve

 1980s economic idea, espoused by Arthur Laffer, suggesting that lowering marginal tax rates stimulates increases in output thereby increasing government tax revenue.
 See also supplyside economics, dynamic scoring.

American business jargon. 2014.

Look at other dictionaries:

  • Laffer Curve — ☆ Laffer Curve [laf′ər ] n. [after A. Laffer (1940 ), U.S. economist, its originator] [also L c ] a graph illustrating a theory which maintains that increasing tax rates beyond a certain point causes a reduction in government revenues by… …   English World dictionary

  • Laffer curve — In economics, the Laffer curve is used to illustrate the idea that increases in the rate of taxation may sometimes decrease tax revenue. Since a 100 percent income tax will generate no revenue (as citizens will have no incentive to work), the… …   Wikipedia

  • Laffer Curve — Invented by Arthur Laffer, this curve shows the relationship between tax rates and tax revenue collected by governments. The chart below shows the Laffer Curve: The curve suggests that, as taxes increase from low levels, tax revenue collected by… …   Investment dictionary

  • Laffer curve — A curve conjecturing that economic output will increase if marginal tax rates are cut. Named after economist Arthur Laffer. Bloomberg Financial Dictionary * * * Laffer curve Laf‧fer curve [ˈlæfə ˌkɜːv ǁ fər ˌkɜːrv] noun ECONOMICS the idea… …   Financial and business terms

  • Laffer curve — /laf euhr/, Econ. a relationship postulated between tax rates and tax receipts indicating that rates above a certain level actually produce less revenue because they discourage taxable endeavors and vice versa. [1975 80; named after Arthur Laffer …   Universalium

  • Laffer curve — [ lafə] noun Economics a supposed relationship between economic activity and the rate of taxation which suggests that there is an optimum tax rate which maximizes revenue. Origin 1970s: named after the American economist Arthur Laffer …   English new terms dictionary

  • Laffer Curve — /ˈlæfə kɜv/ (say lafuh kerv) noun a theory which states that above a certain point tax rates produce less revenue rather than more because they discourage taxable activities, and vice versa. {named after Arthur Laffer, born 1940, US economist who …   Australian English dictionary

  • Laffer curve — / læfə kɜ:v/ noun a chart showing that cuts in tax rates increase output in the economy. Alternatively, increases in tax rates initially produce more revenue and then less as the economy slows down …   Dictionary of banking and finance

  • Laffer curve — noun 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 • Hypernyms: ↑graph, ↑graphical record …   Useful english dictionary

  • the Laffer Curve — UK US noun [S] ► ECONOMICS, GOVERNMENT the theory that if a country s tax rates are low, the amount of money collected by the government will increase, because companies will be encouraged to invest and do business in that country: »According to… …   Financial and business terms

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