[SCalGal]

This is one point that the old-school democrats and republicans could agree on, that if you lower the tax rate, you’ll increase tax revenues. JFK proved this. Reagan proved this.

That's also called the point of diminishing returns.

[SCalGal]

That's also called the point of diminishing returns.

That's what I get for posting before coffee.

The point where revenues start to drop, because prices are just too high - THAT is the point of diminishing returns. To optimise income, pricing (tax) should be set right before that point.