How did tax reduction lead to increased economic growth and prosperity in the 1920s?

As tax rates were cut in the mid‐1920s, total tax revenues initially fell. But as the economy responded and began growing quickly, revenues soared as incomes rose. By 1928, revenues had surpassed the 1920 level even though tax rates had been dramatically cut.

Explanation:

it would be  

germany had to pay all damages related to the war.

and i think

germany had to take sole responsibility for the war.

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explanation: i just want to