Question

The reasoning behind increasing tax revenues from __________ tax rates is that people work harder and more effectively when they can keep more of their income.

Answer 1

Answer:

The reasoning behind increasing tax revenues from decreasing tax rates is that people work harder and more effectively when they can keep more of their income.

Explanation:

A corporate tax cut gives businesses more money to hire workers, invest in capital equipment, and produce more goods and services.

An income tax cut increases the dollars per hour worked. It boosts workers' incentive to remain employed and creates more labor. That is one of the four factors of production that drive supply. Adding to supply will allow the economy to grow. The growth in economy results in more taxes to government in total.