The Laffer Curve is an economic theory that illustrates the relationship between tax rates and tax revenue. It suggests that there is an optimal tax rate that maximizes revenue. If tax rates are too low, increasing them can boost revenue, but if rates are too high, they may discourage work and investment, leading to lower revenue. The curve is often depicted as a bell-shaped graph. At one end, a 0% tax rate results in no revenue, while at the other end, a 100% tax rate also yields no revenue because people may stop working. The peak of the curve represents the ideal tax rate for maximizing revenue.