The Laffer curve indicates that very high rates of taxation can actually reduce tax revenue.

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The Laffer curve is a theoretical concept that suggests that there is an optimal tax rate that maximizes revenue, and that rates that are too high can lead to a decrease in revenue. According to the Laffer curve, if tax rates are increased beyond a certain point, they can discourage economic activity and investment, leading to lower overall tax revenue. However, this concept is debated among economists and the exact optimal tax rate is difficult to determine in practice.

The Laffer Curve Indicates That Very High Rates of Taxation