Trickle Down Economics

11 thoughts
last posted Feb. 18, 2013, 4:57 a.m.

1 earlier thought


The purpose of cutting tax rates is not that this extra money will somehow magically fall through the economic down to people who have less, which is where the term "trickle down" comes from.

Rather, the purpose of cutting tax rates, at least one purpose, is to increase revenue. This increased revenue comes from the expansion of the economy and history has proven that when this happens the top earners end up paying even more tax than before.

9 later thoughts