It depends - Western countries exist in a fiat currency world without a gold price tether, so governments that are sovereign in their own currency do not depend on tax receipts to provide services (the Eurozone is a different kettle of fish due to the common currency and lack of defined horizontal stabilisation).

Generally, if governments foresee the need to encourage economic activity, they should reduce tax rates. If they predict their economy is or will become overheated, they should increase tax rates. If they wish to buy votes from people who don't understand how money and tax work in an untethered fiat currency world, they should increase tax rates into the 90%+ range; however, this will cause economic disruption with some time delay, which those responsible will hope they can blame on the party in power at the time of the disruption.

Yes, I am more cynical now than I was 20 years ago.