Supply-side advocates believe that when taxes and regulations are too burdensome, people will:

Question

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Supply-side advocates argue that high taxes and regulations create disincentives for people to save, work or invest. When taxes are too high, people are less motivated to work because they will receive less take-home pay. Additionally, the cost of saving and investment increases, so people are less inclined to save or invest, leading to less investment capital being available in the economy. Therefore, all of the above options are likely to occur when taxes and regulations are too burdensome.

Supply-Side Advocates Believe That When Taxes and Regulations Are Too