supply-side economics

most broadly, supply-side economics refers to the reform of the supply side of the economy-meaning the institutions and companies that produce the goods people consume. In this traditional sense, supply siders are those who would like these companies to be freer and more efficient, they support the privatization of utilities(such as water and energy companies), cuts in subsidies to struggling sectors( such as farming and mining) and the abolition of monopolies(such as telecommunications companies)
However, since the 1980'supply-side economics' has tended to refer more specifically to arguments in favor of cutting high tax rates, and idea most notably propounded by American economist Arthur Laffer in the late 70`s.
According to him the bigger the taxes are, the bigger are people`s incentives to avoid paying them or to work less. He sketched out a bell-shaped curve(The Laffer Curve) which showed that there was a point somewhere between zero and 100 per cent where a government could get maximum potential revenues.