In economics, the Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue. The theory reasons that because no tax revenue is raised at the extreme tax rates of 0% and 100%, there must be a tax rate between 0% and 100% that maximizes government tax revenue.
In economics, the Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the government's tax revenue. The theory reasons that because no tax revenue is raised at the extreme tax rates of 0% and 100%, there must be a tax rate between 0% and 100% that maximizes government tax revenue.
Source: Wikipedia "Laffer curve" · CC BY-SA 4.0
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