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The Laffer Curve

In economics, the Laffer curve is a representation of the relationship between possible rates of taxation and resulting levels of government revenue. It illustrates the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation.

In economics, the Laffer curve is a representation of the relationship between possible rates of taxation and resulting levels of government revenue. It illustrates the concept of taxable income elasticity—i.e., taxable income will change in response to changes in the rate of taxation.

Source: Wikipedia.

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