Most people do move to better housing, buy more expensive food/clothes and use more electricity when they double their income. And as that doubled income double

Most people do move to better housing, buy more expensive food/clothes and use more electricity when they double their income. And as that doubled income doubles, the amount they are willing to pay for/use those items also goes up. Just as the amount they are willing to haggle for these items goes down (note: I'm talking about majority, I know there are exceptions). So yes, your tax should go up with it as well.