The Bush tax cuts concentrated on reducing ____ tax rates which means they can be expected to improve economic ____.

Question

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The Bush tax cuts focused on reducing marginal tax rates, which are the taxes paid on additional income or the last dollar earned. This can incentivize individuals to work and invest more, leading to increased economic efficiency. Lower average tax rates, on the other hand, would focus more on promoting equity by reducing the overall tax burden on individuals, which was not the primary aim of the Bush tax cuts.

The Bush Tax Cuts Concentrated on Reducing ____ Tax Rates