"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 in line with the principles of supply-side economics, which advocates for lower tax rates to boost economic growth and investment. This school of thought believes that reducing taxes on businesses and individuals will incentivize them to work harder and invest more, which will increase economic output and eventually lead to a larger tax base.

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