There is a general approach all individuals and organizations use when they're faced with higher costs; regardless of whether this cost is increased rent or increased taxes.
- Avoid the increased cost
- Pass on the increased cost
- Cut costs elsewhere to compensate for the increase in costs
If someone wants, I can provide detailed examples of how each of these operates.
Every last one of these approaches has cascading consequences which compound in effect through the economy and act as a drag on economic growth and job creation. To a certain extent this can be balanced out if the increase in cost is for a project which translates into economic growth and job creation, but these kinds of projects are very rare from governments.
With that said, George W. Bush never actually cut taxes because in order to cut taxes you have to cut spending proportionately; otherwise any reduction in taxes paid today will come with higher taxes paid for longer with fewer benefits in the future.
