the Laffer Curve
noun[S]
ukusECONOMICS,GOVERNMENT
thetheorythat if a country'staxratesarelow, theamountofmoneycollectedby thegovernmentwillincrease, becausecompanieswill beencouragedtoinvestand dobusinessin thatcountry:
According to the Laffer Curve,lowertaxrateschangepeople'seconomicbehaviorandstimulateeconomicgrowth.