Tax reduction refers to a decrease in the amount of taxes that individuals or businesses are required to pay to the government. This can occur through various means, such as changes in tax laws, deductions, credits, or exemptions. The goal of tax reduction is often to provide financial relief, stimulate economic growth, or encourage specific behaviors, like investing or charitable giving. Governments may implement tax reductions to boost consumer spending or support struggling sectors of the economy. For example, a reduction in income tax rates can leave individuals with more disposable income, while lower corporate taxes can incentivize businesses to expand and create jobs.