There is a pervasive inverse correlation between government spending, as a percentage of GDP, and the rate of economic growth: https://web.archive.org/web/2017

There is a pervasive inverse correlation between government spending, as a percentage of GDP, and the rate of economic growth: https://web.archive.org/web/20170821004405/http://ime.bg/uploads/335309_OptimalSizeOfGovernment.pdf https://web.archive.org/web/20170821004405/http://ime.bg/upl... A tax cut that isn't matched by a spending cut translates to more government borrowing, where the rich take that money they save on taxes, and lend it to the government.