The mayor of Profligate is correct in thinking that raising the taxes
             might exacerbate the city's financial problems, not to mention create new
             problems, as well. For one thing, the mayor cannot know that the city will
             make the same amount of money based on previous revenues. Secondly, the
             mayor knows if taxes go up, consumers are likely to spend less. An
             increase in sales tax could also result in residents moving out of the
             city, which would be negative for every segment of the community.
             For instance, a tax increase would not only burden retail owners and
             purchasers; it could also cause some retail workers their jobs. Any state
             tax increase will make an impact on the profits of retailers. Some
             individuals might lose their jobs and, even worse, retailers operating on
             marginal profits may be forced to close their businesses. If retailers
             aren't forced to close, they may still have to lay workers off. These
             unemployed people are generally people who desperately need jobs just to be
             able to eat. In addition, those who are laid off tend to spend less money
             because they have less money. This, in essence, only makes the situation
             worse. Some argue that raising the sales tax widens the gap between the
             low and high income. (Schmidt 636) Clearly, raising taxes should be
             The mayor of Profligate also knows that an additional 7% on top of the
             taxes that the people are already paying may be too much. He also knows
             that just because the people voted for it, that does not mean that every
             single person in the community is in favor of a tax increase. Unbearable
             taxes result in unhappy voters. Generally, city and state officials who
             raise taxes are not reelected. In addition, states are limited to how much
             they can tax. Because of this reason, people and businesses have been
             known move to a state with less a lower tax rate if their current taxes
             ...