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RE: Why LOWER TAXES mean more income for the government.Explaining the LAFFER CURVE.
The government doesn't "invest" - it redistributes money from the private sector to areas with a naturally lower pull for those resources. Neither supply side nor demand side tweaks will ever match the efficiency you can get just letting price signals do their job.
Fair point, invest is the wrong word. Efficiency to do what though? help the majority of society, I don't think so. The countries with the highest standards of living, and lowest negative social indicators (e.g. teenage pregnancy, social support, parental leave, low unemployment) are those typified by the Social democratic model of Capitalism that dominates in Scandinavia. Taxes are higher, but the state works together with Capitalism to ensure fairer outcomes for all. Where capitalism has historically not been controlled and supported by the state it runs riot, fails and no one wins. The British and US economies were built in the 19th century by completely protectionist trade policies that the World Bank and other global lenders now ensure are not adopted by countries trying to develop in the same way.