The Laffer Curve claims that a cut in very high tax rates can increase total tax revenues if there are powerful incentive effects.

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The Laffer Curve suggests that if tax rates are very high, reducing them can increase economic growth and ultimately lead to higher tax revenues. This is based on the idea that lower tax rates provide individuals and businesses with more incentive to work, invest, and innovate, which can lead to greater economic activity and higher tax revenues overall. However, the concept is subject to debate and relies on various assumptions and circumstances.

The Laffer Curve Claims That a Cut in Very High