USA HISTORY

Detailed explanation-1: -They argued that if people could keep a higher fraction of their income, people would work harder to earn more income. Even though tax rates would be lower, income would rise by so much, they claimed, that tax revenues would rise.

Detailed explanation-2: -Tax Cuts Don’t Pay for Themselves A key selling point of supply-side economics is that tax cuts actually increase overall tax revenue by boosting employment and the incomes of the population and, therefore, don’t leave the country in more debt.

Detailed explanation-3: -Supply-side economics aims to bolster an economy by implementing policies that will lead to an increased supply of goods and services and subsequent economic growth such as: Reducing corporate income tax rates to provide companies with more cash for reinvestment.

Detailed explanation-4: -Supply side policies are government policies which seek to increase the productivity and efficiency of the economy. Supply side policies aim to increase long term competitiveness and productivity, and in the long run supply side policies can help increase the level of employment in an economy as firms expand and grow.