>One implication of the Laffer curve is that increasing tax rates beyond a certain point is counter-productive for raising further tax revenue. A hypothetical L

>One implication of the Laffer curve is that increasing tax rates beyond a certain point is counter-productive for raising further tax revenue. A hypothetical Laffer curve for any given economy can only be estimated and such estimates are controversial. The New Palgrave Dictionary of Economics reports that estimates of revenue-maximizing tax rates have varied widely, with a mid-range of around 70%.[2] There is a consensus among leading economists that a reduction in the US federal income tax rate would not raise annual total tax revenue.[3]