tax rates in certain scenarios. If capital gains tax rates were 90%, you'd have very few people recognizing capital gains ever.... and you'd have a stagnant economy because you'd have limited people willing to risk capital. Cutting that rate to say 30% would likely result in an increase in capital gains near term as people recognized gains they were previously reluctant to recognize. It would also likely spur new investment which would help grow the economy over time.

Cutting the top rate from 39.6% to 37% is unlikely to ever generate more revenue. It applies to ordinary income (or ST capital gains/non qualified dividends) and it is unlikely to cause a change in behavior. I'm not going to work harder to increase my earnings because the top rate is now 37% vs 39.6%. There are other arguments for reducing the top rate from 39.6% to 37% among them, 39.6% is simply too high. But cutting the rate in order to increase tax revenues is not a valid argument.
[Post edited by BocaHoo91 at 10/14/2021 11:07AM]