The Laffer curve shows the exclusively direct relationship that exists between tax rates and tax revenues.

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The Laffer curve shows the relationship between tax rates and tax revenues, but it is not exclusively direct. At a certain point, increasing tax rates can lead to a decrease in tax revenues as people may be discouraged from investing and working due to the higher taxes. This concept is known as the "taxable income elasticity of the Laffer curve."

The Laffer Curve Shows the Exclusively Direct Relationship That Exists