Question

Based on the taxing and spending cycle, how will changing expenditures affect taxes collected by the government?

Answer 1

Spending less will reduce services, leading to a reduction in tax revenue for the government.

Answer 2

Among the tax classes charged in the US, some are levied on the consumption of goods and services. That is, when more consumption, more goods are sold, and consequently, taxed. The opposite is true, if there is a decrease in the expenses of the economic agents, the lower the demand for products and consequently the taxation will fall.