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That is true. But if maximizing capital gains (not capital gains tax revenues) is the only goal then the obvious answer is to have zero taxes. And this would apply to pretty much every other form of taxation. Taxes have a suppressing effect.
I wouldn't contest that at all.
However, that is not the same as saying that an increase or decrease in a tax always has the inverse impact on revenues from that tax. Obviously that is not true. Going from 1% to 0% tax will decrease the depressing effect of that tax but it will not increase the revenue of the tax.
I'll happily come closer to your side on the question of whether capital gains should be taxes at all.
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