9 upvotes, 1 direct replies (showing 1)
If this is true then surely it is because people are buying fewer things. When most of your taxes come from sales tax, your revenue is high when people can afford to buy things and low when they can’t. It can change unexpectedly. This is one of the reasons people dislike it.
Comment by Own_Back_2038 at 03/02/2025 at 00:22 UTC
1 upvotes, 1 direct replies
Doesn’t the same thing apply to income tax? It’s high when consumer spending is high and therefore wages can be high and unemployment can be low. Property taxes too I think, since the value of property depends on consumer demand, although fixed amount levies sorta counteract that.