What happens when tax rates are below the revenue-maximizing point on the Laffer Curve?

What happens when tax rates are below the revenue-maximizing point on the Laffer Curve?

When tax rates are below the revenue-maximizing point on the Laffer Curve, reducing tax rates can potentially lead to an increase in tax revenue. This is because lower tax rates can incentivize individuals and businesses to work harder, invest more, and engage in productive economic activities, resulting in higher taxable income and ultimately generating more tax revenue for the government.