Answer
a) No, not much tax revenue would be raised.
b) Senator Moynihan might have wanted to bring attention to a larger issue. The larger issue might have been limiting a certain type of firearm that used a certain type of hollow-tipped bullet.
Work Step by Step
a) As tax rates increase, the total revenue would fall. At a 10,000 percent tax rate, not much tax revenue would be received (if any, at all). Imposing a 10,000 percent tax rate would take the price from 1 dollar to 101 dollars, so demand for the item would be minimal. This minimal demand would incur minimal (if any) tax revenue.
