The reason why tax cuts will lead to an increase in interest rates is because tax cuts will lead to an increase in consumption and more cash in hand, so the demand for money will increase. When there is no significant change in the money supply, interest rates will rise and private investment will fall.

Tax reduction (also called tax reduction) is to reduce part of the tax payable by taxpayers according to tax laws and regulations. Tax reduction is a special provision to support, encourage or take care of some taxpayers and taxpayers to reduce their tax burden. Like tax exemption, it is also a policy measure combined with the seriousness and flexibility of taxation, and it is a widely used tax preference method.