Discuss some of the general conclusions arrived at about supply-side tax initiatives

1 . The likely effectiveness of supply-side tax cuts depends on what kinds of taxes are cut. Tax reductions aimed at stimulating business investment are likely to pack more punch than tax reductions aimed at getting people to work longer hours or to save more.
2 . Such tax cuts probably will increase aggregate supply much more slowly than they increase aggregate demand. Thus, supply-side policies should not be regarded as a substitute for short-run stabilization policy but, rather, as a way to promote faster economic growth in the long run.
3 . Demand-side effects of supply-side tax cuts are likely to overwhelm supply-side effects in the short run.
4 . Supply-side tax cuts are likely to widen income inequalities.
5 . Supply-side tax cuts are almost certain to lead to larger budget deficits.