One potential result of the Laffer curve is that increasing tax rates beyond a certain point will become counterproductive for raising further tax revenue.
The Laffer curve predicts such an outcome, attributing the primary reason for the greater revenue to higher levels of economic growth stemming from the introduction of the flat tax.
He understood that high income taxes discourage entrepreneurs, leading to lower incomes and lower tax receipts -- what we now refer to as the Laffer curve.
