The Laffer Curve suggests that there is a maximum level of taxation beyond which increases in the tax rate do not generate additional revenue. (Also sometimes called the "Sheriff of Nottingham paradox": raising taxes on people with nothing does not yield more money)

I was suggesting that there are certain government programs that incur a cost to operate incur a greater cost to cease operating. They generate a net positive on the money spent. Cutting them for "austerity" is foolish.

One must remember that the Laffer curve is a theoretical discussion that can help to explain economic phenomenons. It's not a law of nature.

Laffer curve may point us towards the general direction, but real world observation have showed that there is no simple, smooth curve that predicts tax income versus tax rate - human behaviour is far to much stochastic for that.

Not that theoretical http://www.objectobot.com/wp-content/uploads/2012/12/ADavies...