If you make the gigantic assumptions that the population doesn’t change, the use of services doesn’t change, the price of services only goes down, and the quality of services doesn’t change, then yeah, your very narrow scenario would result in reduced taxes.

I think it’s important for me to clarify the way that I’m viewing (ie my opinion) some of the things that you said: If the population changes, then the demand on the service could change — eg if the population increases, then the demand on the service could also increase by some factor which would also increase the service’s cost by some factor (not necessarily assuming a linear relationship). A change in population could also create a change in tax revenue in the same fashion. What’s important here is how I’m viewing the interaction between those 3 things: subject to real world conditions, I don’t think it’s entirely out of the realm of usefulness to analyze a scenario in which the increase in population could cause a balanced effect on the service — ie the net increase in revenue will perfectly cover the cost of the increase in demand of the service. So, to put all that together, if one is to make that assumption of balanced response, it doesn’t matter how the population changes; if the services operating efficiency increases, then the service’s cost-per-person will decrease. Essentially what I’m trying to say is that the meme is possibly a faulty generalization.