How tax cuts stimulate the economy

Tax is a state forcing a certain amount of money from households and firms not in exchange for goods and services.
Since the services of the state are used by all members of society, the state collects a fee for these services from all citizens of the country, and taxes serve as a tool for redistributing national income.

Taxes affect both aggregate demand and aggregate supply.
Impact of tax changes on aggregate demand Conversely, tax cuts increase aggregate demand
This measure can be used to stabilize the economy during a recession, stimulating business activity and employment.

Firms view taxes as a cost, so tax increases lead to a reduction in aggregate supply, and tax cuts lead to increased business activity and output.