[July 4th]

Practically speaking, the tax rate should vary and not be a fixed value, but here is how it should work.

But the problem with that is that it isn't "free" to change the tax rates. Compliance costs change, and the benefits that come from the business community's reliance on a fixed rate diminish. The people who make economic decisions based on tax are less likely to act when there's another variable in the equation.

[wouldntbprudent]

Another reason why I asked the question about moving from income tax to a VAT tax---or to a VAT + a very modest income tax rate.

A VAT would "freely" change with the economy---not rates, per se, but revenue taken from the market---with no new compliance charges or individual reliance problems.