"A reduction in marginal tax rates will increase the incentive of individuals to (1)save and invest and (2)apply their productive energy in a manner that yields taxable income,while (3)reducing the incentive of individuals to engage in wasteful tax-avoidance activities." Which of the following groups would most likely stress the importance of these factors?

Question

Quizplus · Accepted Answer

Supply-side economists advocate for economic policies that increase productivity and supply, including a reduction in marginal tax rates. They believe that such policies will incentivize individuals to save, invest, and work, ultimately leading to economic growth. The reduction in tax-avoidance activities is also a priority for supply-side economists, as they believe that a simplified tax code will increase efficiency and economic growth.

"A Reduction in Marginal Tax Rates Will Increase the Incentive