The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Thursday, November 9, 2017

Trump/Ryan Tax Plan (Trickle-down Doesn't Work For The Middle Class)

Image result for trickle down effect

Gary Kohn

Director of the National Econo
mic Council and chief economic adviser to President Donald Trump.

“When you take a corporate tax rate at 35 percent and move it to 20 percent, and you see what’s happened over the last two decades to businesses migrating out of the United States, migrating profits out of the United States, migrating domicile out of the United States, and hiring workers out of the United States, it’s hard for me to not imagine that they’re not going to bring businesses back to the United States.

“We create wage inflation, which means the workers get paid more; the workers have more disposable income, the workers spend more. And we see the whole trickle-down through the economy, and that’s good for the economy.”

May I ask: "What does that statement remind of? Hint: Ronald Reagan's failed economic policy.
The Balance dot com 

Definition: Trickle-down economics is a theory that says benefits for the wealthy trickle down to everyone else. These benefits are usually tax cuts on businesses, high-income earners, capital gains and dividends.

..... Trickle-down economics says that Reagan's lower tax rates should have helped people in all income levels. In fact, the opposite occurred. Income inequality worsened. Between 1979 and 2005, after-tax household income rose 6 percent for the bottom fifth. That sounds great until you see what happened for the top fifth. Their income increased by 80 percent. The top 1 percent saw their income triple. Instead of trickling down, it appears that prosperity trickled up.

In 2015, The Economic Populist published a detailed piece about the long-term failure of supply-side economics."  folks, it simply doesn't trickle.

Trickle down economics at work

No comments :

Post a Comment