Laffer curve

The Laffer Curve is a curve that shows the relationship between taxes and government income. On the left side of the curve, taxes are at 0%, so the government doesn't get any money. On the right side of the curve, taxes are at 100%, so the government also doesn't get any money! In between these two points, the amount of money the government takes in from taxes (its income) increases as the taxes go up, but eventually starts to go down. That's because if taxes get too high, people will start to work less and the government will get less money.