Do I need to install anything?

No. It runs in any modern browser, free, with no account required.

For Students · Laffer Curve

Laffer Curve for a tax cut

Built for students learning it for a class or exam. See the concept move instead of memorizing formulas — and check your homework intuition. Simulate a tax cut live below — adjust the inputs and watch it respond, right in your browser.

Laffer CurveLive

tax rate vs revenue

Controls

Presets

Behavioral response

Tax rate

At a 0% tax rate the government collects nothing; at 100% no one bothers to earn taxable income, so it also collects nothing. Somewhere between lies a revenue-maximizing rate — the peak of the Laffer curve. How responsive people are to taxes (the elasticity) sets where that peak falls. It is descriptive, not a policy prescription.

▶ Run in Python

Data Inspector

Revenue at rate0.278

Revenue-max rate55%

Zonebelow peak

Governing equation

R (t) = t B (t) = t (1 - t^{1.5}), \frac{d R}{d t}_{t^{*}} = 0, t = 0.35

Reading this result: Below the revenue-maximizing rate (≈55%) — the base is still large, so a modest rate increase collects more.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

or unlock everything with Pro →

Also for:Researchers Educators Engineers Hobbyists & Makers K-12 Students First Responders General version →

More with Laffer Curve

Laffer Curve for a supply-demand market Laffer Curve for a monopoly Laffer Curve for an auction Laffer Curve for a tax policy Laffer Curve for a trade tariff Laffer Curve for an inflation model Laffer Curve for a labor market Laffer Curve for a game-theory standoff

Frequently asked questions

Is this good for students?: Yes — this version of "Laffer Curve for a tax cut" is framed for students learning it for a class or exam. See the concept move instead of memorizing formulas — and check your homework intuition.
Do I need to install anything?: No. It runs in any modern browser, free, with no account required.