Laffer Curve
Also called: Laffer, tax revenue curve
The Laffer curve observes that tax revenue is zero at a 0% rate and zero again at 100%, so somewhere between them revenue peaks. The logic is uncontroversial; the political fight is over where the peak sits. Empirical estimates for top income-tax rates in developed economies generally place it well above prevailing rates, which means cuts from current levels usually reduce revenue rather than paying for themselves.