Laffer curve says that increasing tax rate doesn't necessarily increase total tax revenue. If the tax is too high, business becomes unprofitable and goes bust.

Laffer curve says that increasing tax rate doesn't necessarily increase total tax revenue. If the tax is too high, business becomes unprofitable and goes bust. A closed shop is bringing in 0 taxes. Even the Mafia understood that you can't squeeze the shops too hard or they'll just stop paying.