Tax cuts can affect how people shop and how businesses spend their money in different ways.

At first, when taxes go down, people might spend more. But, they could also feel uncertain about their finances and worry about debt. This can make them less confident in their spending.

Businesses might also hold off on making big investments because the economy feels unstable.

To help with these problems, we can:

• Build Consumer Confidence: The government should make rules that keep the economy steady.
• Support Business Investment: Create rewards for companies that want to innovate and grow.

In summary, tax cuts can give a quick boost to the economy, but we need to manage them carefully to prevent any negative effects.