Political debates about the United States federal budget concentration of income at the top of the income distribution." In theory, the government collects no revenue at either zero or 100% tax rates. So there is some intermediate point at which government revenue is maximized. Lowering tax rates from 100% to this hypothetical rate that maximizes revenue would theoretically raise revenue, while continuing to lower tax rates below this rate would lower revenues. This concept underlies the Laffer Curve, an element of supply-side economics. Since the 1970s, some "supply side" economists have contended that lowering marginal tax rates could stimulate economic growth to such a degree that tax revenues
George Laffer George Laffer George Richards Laffer (14 September 1866 – 7 December 1933) was an Australian politician. He was member of the South Australian House of Assembly from 1913 until 1933, representing the electorate of Alexandra for the Liberal Union, and its successors the Liberal Federation and Liberal and Country League. He was a minister in the Barwell government, and was Speaker of the South Australian House of Assembly from 1927 until 1930. Laffer was born at Coromandel Valley into a fruit-growing family, his father having emigrated from Cornwall in 1840. He continued in the family business, and was actively involved