According to supply-side economists,lower marginal tax rates will not necessarily lead to lower tax revenues because

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According to supply-side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because the lower marginal tax rates will be applied to a growing tax base due to economic growth. As the economy grows, more individuals and businesses will enter the tax base, leading to an increase in tax revenues even with lower tax rates. This concept is known as the Laffer Curve, which illustrates the relationship between tax rates and tax revenues. At very high tax rates, a decrease in tax rates will lead to an increase in tax revenues, while at very low tax rates, an increase in tax rates will lead to an increase in tax revenues.

According to Supply-Side Economists,lower Marginal Tax Rates Will Not Necessarily