Which type of tax provides the most stable funding source during an economic downturn?

Question

Quizplus · Accepted Answer

Income tax is a progressive tax that is levied on individuals and businesses based on their income. During an economic downturn, income tax revenue may decline as businesses and individuals experience reduced income. However, income tax still provides a relatively stable funding source compared to other types of taxes, such as sales tax or gas tax, which are more directly tied to consumer spending and economic activity.

Which Type of Tax Provides the Most Stable Funding Source