You could maybe somehow relate it to supply and demand dynamics, but the idea that that higher taxes can start reducing receipts after a certain point is widely credited to Laffer (although apparently there are signals of others saying similar things throughout the history of economics). The Laffer model displays an inverted U curve.
The Laffer curve is a result of the Law of Supply and Demand.
It's no different than increasing the price of X causes the sales of X to go down.