Laffer curve


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Words related to Laffer curve

a graph purporting to show the relation between tax rates and government income

References in periodicals archive ?
Mr Marris told MPs: "I hear the figures bandied about - about how the 50 per cent tax rate will drive people out the country, about the Laffer curve and about how the tax take will go down.
Which brings us back to Moore's citing of the Laffer Curve. A simple parabola sketched out on a cocktail napkin back in 1974 by the felicitously named Arthur Laffer (then a University of Chicago business professor), this theory holds that there is a magical, ideal tax rate that produces the most revenues for the government.
(9) Our contention is that the clause goes beyond some vague notion of "compromise." In particular, it represents a constitutional constraint that effectively limited Confederate tariffs to the lower end of the Laffer curve. But before turning to an examination of the economic and historical basis for this interpretation of the Confederate tariff clause, we examine some of the forerunners to the clause.
The concept of a Laffer curve for the value of claims on a developing country can be used as an argument for debt forgivingness.
The semi-log generates a Laffer curve: The steady state maximum revenue is at
The debt-relief Laffer curve (figure 1) captures the intuitive notion that debt service ability is not independent of a country's debt burden.
Before the revenue-maximizing tax rate u*, i.e., the upward-sloping portion of the Laffer curve or dTRu/du [is greater than] 0, it is evident from equation (38) that [TR.sub.u] and [Q.sub.u] must move in the opposite direction, i.e., to increase [TR.sub.u], [Q.sub.u] must decrease.
Their main contribution to the Laffer curve theory is confirmation that the tax rate maximizing relative tax revenue (tax quota) is diminishing over time.
economy were in the so-called prohibitive region of the Laffer Curve (the prohibitive region of the Laffer Curve is the region within which an increase in tax rates leads to a reduction in tax revenues), which is highly unlikely.
This was the underlying premise of the Laffer curve of the Ronald Reagan era and Stigler's point of view as well: "Income of the poor cannot be increased without impairing incentives." But which of the poor did Stigler have in mind: the working poor by raising their minimum wage, or the chronically poor by raising their GAI?
SIR - I am saddened that the widely respected Professor Brian Morgan should claim that what he calls the "bloated public sector" will hamper economic recovery in Wales, and that he should use column inches in your newspaper to deliver a tutorial on the "Laffer Curve" (April 24).
You may bet Mr Brown has studied the "Laffer curve".
A rate high on the Laffer Curve means that more work for more income is less profitable than maneuvering to avoid taxes on existing income.
The figure, it turns out, derives from a calculation by economist Arthur Laffer, deviser of the laughable Laffer Curve, that a federal tax amnesty could realize $100 billion while a state and local one could bring in another $50 billion.
The author found that the relationship between tax rate and tax collection in Pakistan has not been governed under the Laffer Curve. The Laffer Curve indicates three stages of correlation between tax rate and tax collections.