Laffer Curve

A model suggesting tax revenue falls if rates get too high.

The Laffer Curve illustrates that both 0 and 100 percent tax rates raise no revenue, implying an optimal rate in between. Supply-siders cite it to argue tax cuts can boost revenue, but economists disagree on where the peak lies and whether current rates are above it.

Citing the Laffer Curve, he claimed that cutting the top tax rate could actually raise revenue.