The Cato Institute’s Dan Mitchell boils economic growth down to one simple truth. Why don’t the politicians seem to grasp such indisputable common sense?
Proponents of lower tax rates are motivated by a desire to improve incentives for people to earn additional income with more work, more saving, and more investment. That’s the basic insight of supply-side economics. It has nothing to do with how they spend (or don’t spend) their income.
The well known Laffer Curve also suggests that lowering taxes may indeed increase government revenue as well.