Laffer curve
This is an old revision of this page, as edited by Aschlafly (talk | contribs) at 00:56, January 23, 2007. It may differ significantly from current revision.
The Laffer curve illustrates that increasing tax rates may decrease government revenue as people stop working, and increasing tax rates towards 100% causes government revenue to decline to zero as everyone stops working. Government revenue is not always increased by increasing taxes. If the tax rate is higher than t* in the Laffer curve below, then increasing taxes causes government revenue to decrease.
Laffer curve
