[frogjerk]

If the economy 'tanks', and the American people are having to do with less, that would be a good time for government to have to tighten its belt as well.

Unfortunately, given the nature of government, this never happens... :(

[EternalVigilance]

Unfortunately, given the nature of government, this never happens... :(

Under the NRST, they would have to.

Hamilton, in the Federalist Papers, talks about how taxes on consumption are self-leveling, like water. If you raise the rate too high, revenues will fall at some point, not increase.

Politicians, faced with falling revenues, would have two choices: cut spending, or try and raise the rate. The problems with choice two are A) That move could be quite politically unpopular...and B) Doing so could easily reduce revenues even further, because of the higher prices discouraging consumption.

This natural dilemma for politicians can be nothing but a win/win for a free people.

This is a simple principle that every American who is trying to understand fundamental tax reform needs to get through their skulls.

[Principled]

EV: If the economy 'tanks', and the American people are having to do with less, that would be a good time for government to have to tighten its belt as well. FJ: Unfortunately, given the nature of government, this never happens... :(

Why do you think that is? What allows gove't the ability to raise taxes at will?