Tax cut

Okay kiddo, so you know that sometimes mommy and daddy have to give some of their money to the government, right? Well, sometimes the government decides to give some of that money back to mommy and daddy as a "tax cut".

Imagine if you had a bag of candy and you decided to share some of it with your friends. Giving a tax cut is kind of like that - the government is sharing some of the money they collected from people like mommy and daddy with them.

Why do they do this? Well, sometimes the government wants to encourage people to spend more money and help the economy grow. By giving a tax cut, mommy and daddy might have more money to spend on things like going out to eat or buying new clothes. They might even start a small business or invest in the stock market.

So a tax cut is when the government gives some of the money they collected from people back to them, so they can spend more money and help the economy grow.