Arthur Laffer (Laffer Curve)

Arthur Laffer, an economist, developed the concept of the Laffer Curve to illustrate how tax rates impact government revenue and economic activity. The curve shows that at a 0% tax rate, the government collects no revenue, and at a 100% rate, revenue also drops to zero because people wouldn't work or earn income. Somewhere in between, there's an optimal tax rate that maximizes revenue without discouraging productivity. If taxes are too high, people work less or hide income; if too low, the government misses out on potential revenue. The curve helps policymakers balance taxation and economic growth effectively.