A tax reduction implies a decrease of the income earned by the public sector. Such income is colleted from citizens, specially from those who earn a salary, as work incomes are where the more taxes are charged.
<u>Supply-side economics claims that a tax reduction increases the disposable income that citizens actually receive,</u> as there are less cuts in the wage that they earn from work. This would work as an incentive and boost work figures and productivity figures as, for a higher retribution, more people will be willing to work and those who are already working will be incentived to put more effort on their tasks
