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which economic theory adopts the idea that cutting the marginal tax rate can actually increase government revenue?

Sagot :

ayfat23

The economic theory that adopts the idea that cutting the marginal tax rate can actually increase government revenue is supply-side economics.

What is the supply-side economics?

Supply-side economics,  can as well be described as the trickle-down economics, theory which is one that  focuses on influencing the supply of labour and goods.

It should be noted that this is usually done by the use of  tax cuts and benefit cuts as incentives to work and produce goods., however it can be perceived as one that focus on the process of  cutting the marginal tax rate  which can actually increase government revenue.

Learn more about economics at:

https://brainly.com/question/25745683

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