In 2017, the United States federal government implemented the Tax Cuts and Jobs Act, which lowered the top individual income tax rate from 39.6% to 37%. Supporters of the policy asserted that the tax cuts would spur significant economic growth, ultimately paying for themselves through a larger tax base. In contrast, critics pointed to projections of a substantial increase in the national budget deficit, arguing that the tax cuts would significantly reduce federal revenues.
Evaluate the view that a reduction in the top marginal rate of personal income tax will inevitably lead to a decline in total government tax revenue.
