Tax Deductions: These are specific expenses or deductions that individuals or businesses can subtract from their taxable income, reducing the overall amount they owe in taxes.
Marginal Tax Rate: This term refers to the percentage rate applied to an individual's additional income within a certain tax bracket. It determines how much extra tax someone will pay as their income increases.
Supply-Side Economics: Also known as "Reaganomics," this economic theory focuses on stimulating economic growth through reducing taxes and regulations, with the belief that it encourages investment and incentivizes productivity.