# Laffer Curve

*Macro & Economy — Finicade finance glossary*

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.

**Also known as:** Laffer, tax revenue curve

**Related terms:** [Fiscal Policy](https://finicade.com/glossary/fiscal-policy), [Marginal Tax Rate](https://finicade.com/glossary/marginal-tax-rate), [Budget Deficit](https://finicade.com/glossary/budget-deficit), [Tax Bracket](https://finicade.com/glossary/tax-bracket), [Government Debt](https://finicade.com/glossary/government-debt)

Source: https://finicade.com/glossary/laffer-curve