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klasskru [66]
3 years ago
8

explain how supply side economics has led to lower relative taxes on higher earning citizens in America.

Social Studies
1 answer:
diamong [38]3 years ago
7 0

Answer:

It shows that higher tax rates can sometimes decrease the tax base, which will lead to the decrease in tax revenues even if the tax rates are high. ... This led supply-siders to advocate large reductions in marginal income and capital gains tax rates to encourage greater investment, which would produce more supply.

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