Laffer curve

from The American Heritage® Dictionary of the English Language, 5th Edition.

• noun A curved graph that illustrates the theory that, if tax rates rise beyond a certain level, they discourage economic growth, thereby reducing government revenues.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

• noun a graph purporting to show the relation between tax rates and government income; income increases as tax rates increase up to an optimum beyond which income declines