A curve showing the relation between the tax rate and the amount of tax revenue raised. The Laffer curve was named following a presentation by Arthur Laffer to members of the Ford Administration in the US. The curve shows that the tax revenue from an activity starts from zero with a zero tax rate, and rises as the rate is increased. A tax tends to discourage the activity, however, so that at some point the total revenue raised begins to fall. This tendency is accentuated by the effect of higher tax rates in inducing tax evasion. These properties of the Laffer curve have been used to justify tax cuts as a means of increasing tax revenue.