If aggregate demand is strong, this will mean, all else equal, more rapid growth in the economy, higher incomes, more people employed, and higher returns from the stock market. What does this mean for government coffers? It means more revenues taken in at the Federal government level from income taxes. At the state government level, it may well mean more revenues from sales taxes, and people consumer more. At the local government level, it could mean higher property values if people are employed to a greater extent, earning more, and bidding up prices for homes. Local tax revenues could also increase noticeably if there is a housing bubble I for one have seen a large increase in my property taxes, given how steeply home values have risen in the past couple of years in connection with the pandemic and a limited supply of homes available for sale.