Taxes

The typical government cycle is to increase the rate of taxation during an economic downturn (to make up for lost revenue) and then to keep the increase during strong economic times. This cycle is unsustainable. If the government is required to depend on economic recovery for its revenue increases, I believe it will operate considerably more efficiently (during the downturns) and would be much more encouraging of economic development issues. If we simply raise tax rates every time there is a “perceived spending need”, we will eventually collapse under the weight of overtaxation.