Question

What do supporters of supply-side economics believe?

Answer 1

That taxes have a strong negative influence on economic output

Step-by-step explanation:

Answer 2

Supporters of supply-side economics believe taxes have a strong negative influence on economic output. This means that taxes punished productivity and if they were lowered, people would produce more goods and services. This theory states that if taxes were cut on the richest people in society, rich people would use their extra money to invest in the economy, but if taxes were increased, the wealthy would leave the country and invest somewhere else where the tax rates are lower.