The idea that high taxes take money out of the economy that would otherwise be used to purchase goods and services is part of which economic theory?

Question

Quizplus · Accepted Answer

The idea that high taxes take money out of the economy that would otherwise be used to purchase goods and services is a fundamental principle of supply-side economics. Supply-side economics emphasizes the importance of low taxes and limited government intervention in the economy to stimulate economic growth and create incentives for investment and productivity. This theory holds that reducing tax rates will encourage businesses to invest more, leading to higher economic growth and greater prosperity for all.

The Idea That High Taxes Take Money Out of the Economy