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Laffer Curve
A theoretical curve which shows the relationship between tax rates and the total amount of tax revenue collected. The curve is usually bell shaped, with zero taxes being raised at tax rates of 0% (where zero tax is deducted) and 100% (on the basis that there is no financial incentive for an individual to work), with an optimal rate being possible to calculate at the tax rate which results in the maximal revenue generated. The curve is often used to argue that it is possible to increase overall revenue generated by cutting the rate of tax.