[Phanekim]

Raising or Lowering of taxes depends on consumer spending. Usually if the economy is experiencing a recent downswing, it is encouraged to lower taxes to while consumer spending habits are still high. in short, this way, consumers still "pump" money into the economy.

However, after long periods of economic downswing, consumer spending will have adjusted and a lot more people are "hoarding" money. Lowering taxes will not do anything if conusumer spending is already low. Thats why higher taxes are required to "pump" money into the economy (keynesian).

Usually this is because spending habits adjust slower to the upswings and downswings of the economy.

This is just from taking a few economics classes and having an econ major as a roomie for a couple years. Anyways, thats the "jyst" of it.