The deadweight loss of a tax rises more than proportionally as
the tax rises. Tax revenue, however, may increase initially as a
tax rises, but as the tax rises further, revenue eventually
declines. For example; if you sell a product with a $1.00 tax, you
have less tax revenue than if you sold twenty of the product with a
.10 cent tax. When you increase a tax, the revenue goes down
because the product will not sell at that higher price.