Meaning of Laffer curve

Laf'fer curve"

Pronunciation: (laf'ur), [key]
— Econ. Econ.
  1. a relationship postulated between tax rates and tax receipts indicating that rates above a certain level actually produce less revenue because they discourage taxable endeavors and vice versa.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.