Tax rates and tax incomes

The UK government is currently talking about amending its tax rates on businesses and housing and the goal is not only to encourage small businesses and improve economic performance, but also to improve the current budget. The former Chancellor Osborne raised the tax rates on luxury housing and this led the tax incomes from housing stamp taxes to reduce. The stamp tax increasing led to the quantities of housing sales reducing. Given the uncertainties caused by the upcoming Brexit, the UK housing market is in decline. Once the market is in boom, the tax rate hike could improve the tax incomes, as the quantity is less influenced by the tax hike.
The goal of tax is to mitigate the economic volatility. The government budget is important but sometimes is not as important as people expect. In the countries with strong economies, the governments do not necessarily need a very government budget. The US government expanded its deficit constraint under the Obama administration. Although it did influence the financial market, it did not have a long term impact on the global economy as well as the financial market. Moreover, under the Trump administration, the US government budget deficit tends to enlarge, but the reaction of the Wall Street stays relatively optimistic about the future US economy and does not pay much attention about the American government deficit.