Laffer curve and many others advocate a zero capital gains rate. The increased aggregate supply would result in increased aggregate demand, hence the term "supply-side economics". Laffer assumes that the government's revenue is a continuous function of the tax rate. However, in some theoretical models, the Laffer curve can be discontinuous, leading to an inability to devise a revenue-maximizing tax rate solution. Additionally, the Laffer curve depends on the assumption that tax revenue is used to provide a public good that is separable in utility and separate from labor supply, which may not be true in practice. The Laffer curve as presented
Laffer curve Jude Wanniski, who was also present at the meeting. The basic concept was not new; Laffer himself notes antecedents in the writings of the 14th-century social philosopher Ibn Khaldun and others. Laffer does not claim to have invented the concept; he notes that there are antecedents, including in the "Muqaddimah" by 14th-century Tunisian scholar Ibn Khaldun, and in the writings of John Maynard Keynes. It was not until the 1970s that Laffer's name began to be associated with the idea. The term "Laffer curve" was reportedly coined by Jude Wanniski (a writer for "The Wall Street Journal") after a 1974