What result did Ronald Reagan believe would come from reducing income tax rates
A)Government tax collections would decline.
B)Government tax collections would rise.
C)The U.S.federal deficit (and the national debt) would increase.
D)There would be no effect on the amount of government tax collections.

Question

Quizplus · Accepted Answer

Ronald Reagan believed that reducing income tax rates would lead to increased economic growth and job creation, which in turn would lead to higher government tax collections. This theory is known as "trickle-down economics" or "supply-side economics." Therefore, the correct answer is B - government tax collections would rise.

What Result Did Ronald Reagan Believe Would Come from Reducing