Heritage's economics team is set to release two papers that will go into supportive detail. Consumption would be higher under a rate cut. The growth of inflation-adjusted investment would be higher. Combining lower tax rates, death tax repeal, marriage penalty reform and an expansion of the child tax credit would produce nearly 2 million more jobs. It is production, not spending, that drives the economy.
Rebates are really a form of government spending.
Tax relief is when government does not take money from people in the first place. Supply-side tax policy is the way to boost economic growth. Tax rate reductions help the economy by encouraging people to produce more. When lawmakers reduce the penalty on work, saving, investment, and entrepreneurship, people have an incentive to produce more. Simply put, lower tax rates would increase economic growth, create more job opportunities, increase family income, increase family savings, and increase investment.