Muqaddimah empires to collapse, with the result that lower revenue was collected from high rates." He wrote: Ibn Khaldun introduced the concept now popularly known as the Laffer curve, that increases in tax rates initially increase tax revenues, but eventually the increases in tax rates cause a decrease in tax revenues. This occurs as too high a tax rate discourages producers in the economy. Ibn Khaldun used a dialectic approach to describe the sociological implications of tax choice (which now forms a part of economics theory): This analysis is very similar to the modern economic concept known as the Laffer curve.
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