How does the Laffer Curve relate to the concept of deadweight loss?

How does the Laffer Curve relate to the concept of deadweight loss?

The Laffer Curve relates to the concept of deadweight loss by illustrating the relationship between tax rates and government revenue. The curve suggests that as tax rates increase from zero, government revenue initially increases, but at a certain point, further increases in tax rates lead to a decrease in revenue. This occurs because higher tax rates can discourage economic activity, leading to reduced production, consumption, and overall economic efficiency. The deadweight loss refers to the loss of economic welfare that occurs when resources are not allocated efficiently due to market distortions, such as excessive taxation. Therefore, the Laffer Curve highlights that excessive taxation can lead to deadweight loss by reducing economic activity and overall welfare.