Because what happens is, as the economy suffers, tax revenues go down. But unlike businesses, where at least your variable costs go down, in government your variable costs go up: unemployment insurance, workmen’s compensation, health care benefits, welfare, you name it.
![Because what happens is, as the economy suffers, tax revenues go down. Because what happens is, as the economy suffers, tax revenues go down. Image](https://www.idlehearts.com/images/because-what-happens-is-as-the-economy-suffers-tax-revenues-go-down.jpg?x85372)