Reagan opined that cutting tax rates would increase revenue as you took smaller slices of a larger economic pie.

Results from states raising cigarette taxes do not support this conclusion.

At some point, the Laffer Curve would of course be a truism, ie. if the tax rate were indeed 100% you would most likely collect $0 since it would really just act as a prohibition, but within the reasonable range of taxes, I have yet to see an example where it holds true.

I thought that it might hold true with respect to cigarette taxes imposes in NYC which were the highest in the nation, relatively easy to avoid since neighboring jurisdictions imposed much less taxation where making a relatively cheap trip by train could yield serious savings and yet it still seems to be yielding more revenue....

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