15 Facts About Laffer curve

One implication of the Laffer curve is that increasing tax rates beyond a certain point is counter-productive for raising further tax revenue.

The term "Laffer curve" was coined by Jude Wanniski, who was present at the meeting.

Laffer curve's name began to be associated with the idea after an article was published in National Affairs in 1978 that linked him to the idea.

Laffer curve gave the example of a toll on late-night entry to a town which would be less remunerative if set unreasonably high.

One of the conceptual uses of the Laffer curve is to determine the rate of taxation that will raise the maximum revenue .

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Laffer curve has been extended to taxation of goods and services.

Robert Chote, the chairman of the UK Office for Budget Responsibility commented that Britain was "strolling across the summit of the Laffer curve", implying that UK tax rates had been close to the optimum rate.

Laffer curve has similarly referred to the economic outcome of the Kemp-Roth tax cuts, the Kennedy tax cuts, the 1920s tax cuts, and the changes in US capital gains tax structure in 1997.

Laffer curve maintained that the Laffer curve was not to be taken literally—at least not in the economic environment of the 1980s United States.

Laffer curve explains the model in terms of two interacting effects of taxation: an "arithmetic effect" and an "economic effect".

Similarly, the Laffer curve is often presented as a parabolic shape, but there is no reason that this is necessarily the case.

In 2007, Laffer said that the curve should not be the sole basis for raising or lowering taxes.

Laffer curve assumes that the government's revenue is a continuous function of the tax rate.

However, in some theoretical models, the Laffer curve can be discontinuous, leading to an inability to devise a revenue-maximizing tax rate solution.

Laffer curve as presented is simplistic in that it assumes a single tax rate and a single labor supply.