Are Tax Cuts the Best Way to Stimulate Growth?

I’ll be blunt, tax cuts absolutely can stimulate growth, but only under specific structural conditions. If you reduce marginal rates in a way that incentivizes capital formation and productive investment, you can increase output over time. That’s not ideological; that’s basic economic theory. Look at the supply-side argument during the era of Ronald Reagan. Supporters claim lower taxes contributed to expansion in the 1980s. Whether you think it was perfect policy or not, growth did follow.