The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 13

Voters who don't want their taxes increased impose obvious constraints on any democratic government's ability to raise additional revenue, but there are other constraints as well.
(a) How can people legally avoid a state income or sales tax?
(b) Voters don't seem to be terribly hostile toward increased taxes on business. Why can't state and local governments collect all the revenue they want simply by raising taxes on businesses?
(c) Why don't these constraints bind the federal government as Effectively as they bind state and local governments?