A reduction in tax rates may result in a short-term reduction in government revenues, but it
Jwill also leave people with more disposable income.

Question

Quizplus · Accepted Answer

When taxes are reduced, people have more money to spend, which can stimulate the economy and ultimately lead to increased tax revenues in the long run. The short-term reduction in government revenues is offset by the potential long-term benefits.

A Reduction in Tax Rates May Result in a Short-Term