Tax cuts

Tax cuts are reductions in the amount of money individuals or businesses are required to pay in taxes. When taxes are cut, taxpayers keep more of their income, which can lead to increased consumer spending, investment, and economic growth. Governments use tax cuts as a policy tool to stimulate the economy, encourage business activity, or address specific economic issues. However, they also reduce government revenue, which can impact public services unless offset by spending cuts or growth in other areas. Overall, tax cuts aim to boost economic activity, but their effects depend on timing, scale, and existing economic conditions.