According to supply siders, tax cuts can raise total tax revenue if the tax cuts generate large enough:

Question

Quizplus · Accepted Answer

According to supply siders, tax cuts can raise total tax revenue if the tax cuts generate a large enough increase in aggregate supply. This is because when taxes are reduced, individuals and businesses have more money to spend and invest, which in turn leads to increased economic activity, production, and ultimately, more tax revenue for the government. However, for this to work, the increase in aggregate supply needs to be significant enough to offset the revenue loss from the tax cuts.

According to Supply Siders, Tax Cuts Can Raise Total Tax