What is the theory called that states that cutting taxes increases government revenue?
I saw the question on jeopardy a few days ago but I can't remember what it was. It seemed like the theory was named after someone but I'm not sure.I know it wasn't the trickle-down theory.I've tried to find it on google but can't.Can someone help me!?
- Anonymous1 decade agoFavorite Answer
Cutting INCOME taxes on the wealthiest Americans has historically increased government tax revenues overall as they are more likely to invest/trade with that money and thereby incur capital gains taxes which are at a much higher rate than income taxes.
It isn't a theory, it is a phenomenon.
- Anonymous1 decade ago
Try googling Arthur Laffer or Supply Side Economics.
- Give BloodLv 71 decade ago
Ronald Reagan's trickle down theory that doesn't work.