"Lower marginal tax rates encourage people to work, save, and invest, resulting in more output and a larger tax base." This statement most closely reflects which of the following schools of economic thought?

Question

Quizplus · Accepted Answer

The statement is a key tenet of supply-side economics, which argues that lower tax rates incentivize individuals and businesses to increase their economic activity, leading to higher overall economic growth and ultimately, increased tax revenue.

"Lower Marginal Tax Rates Encourage People to Work, Save, and Invest