How does an increase in tax burden typically affect consumer behavior in an economy?

When the tax burden increases, consumers often have less money to spend because they have to pay more in taxes. This means they may cut back on buying non-essential items like entertainment or luxury goods, leading to less spending in the economy. For example, if a family has to pay higher taxes, they might decide to eat out less often or skip vacations. As a result, businesses may see a decline in sales, which can affect their profits and hiring decisions. Overall, higher taxes can lead to a slowdown in consumer spending, which can impact economic growth.