tax cuts don’t always reduce tax revenue. But CBO always say that b/c they don’t use dynamic scoring.
as reagan [art laffer] showed, there is a non-linear relationship between tax rates and tax revenue. lower taxes can absolutely mean more revenue.
like selling shoes for $300 generate revenue of $3 million [10,000 pairs]. Will reducing the price to $250 reduce revenue generated? Lowering the price sells more pairs! If 12,500 pairs are sold at $250 that’s 3.125 million.