The Laffer Curve Explained | Tax Rate vs Tax Revenue | Dr. Anil Lamba

In 1974, economist Arthur Laffer picked up a paper napkin at a restaurant in Washington and drew a simple curve. That napkin changed how governments around the world think about taxation. The Laffer Curve makes one counterintuitive argument, raise tax rates too high and tax collection actually falls. There is an optimum rate beyond which every increase becomes counterproductive. It is one of the most fascinating stories in economic history! #money #economy #economics #government #finance #financialliteracy #explained #tax