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It depends on what the tax increase or tax decrease affect. If a tax cut goes predominantly to those who invest in greater productivity, then increased supply
by thyrsus 9y ago
It depends on what the tax increase or tax decrease affect. If a tax cut goes predominantly to those who invest in greater productivity, then increased supply can drop prices - but only if that investment is more efficient than consequently relinquished government investment. These things are horribly difficult to measure. Perhaps Ukrainian defense spending is a total waste, and should cease with a corresponding tax cut. Perhaps it is preventing a transfer of common wealth to an oligarch, and is the most important investment the country makes. I'm quite sure I don't know.