What did both Ronald Reagan and Arthur Laffer agree would result from reducing income tax rates
A)increased national debt
B)decreased government tax collections
C)increased government tax collections
D)no change in the amount of revenue the government collected

Question

Quizplus · Accepted Answer

Both Ronald Reagan and Arthur Laffer believed in supply-side economics, which suggests that reducing income tax rates would stimulate economic growth and lead to higher levels of government tax collections, despite the lower tax rates. This theory is based on the idea that lower taxes would incentivize businesses and individuals to work harder, invest more, and spend more, thereby generating more tax revenue. While this theory has been debated, Reagan and Laffer both believed in its effectiveness.

What Did Both Ronald Reagan and Arthur Laffer Agree Would