show_chart Laffer Curve

Relationship between tax rates and revenue

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"We tax speeders on the highways to get them to stop speeding. We tax cigarettes to get people to stop smoking. Why then do we tax people who earn income? Why do we tax people who employ other people? Why do we tax companies that make wonderful products at low cost and make lots of profits? Don't for a moment think that the same consequences don't befall taxes on income, employment, and profits as they do on speeders and on smokers."

— Laffer, Arthur event 2025

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"If you tax people who work, and you pay people who don't work, do not be surprised if you have a lot of people not working."

— Laffer, Arthur event 2025

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Laffer, Arthur

American economist, creator of the Laffer Curve, influential in supply-side economics and tax policy

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Laffer Curve

The Laffer Curve is an economic model illustrating the relationship between tax rates and the total tax revenue collected by governments. It shows ...

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