I love our trickle-down economy. Meaning, in our economy good things start at the top and trickle down to the bottom surprisingly fast. But before going any further, we have to talk about “trickle down theory” which is quite a different animal.
From time to time, proponents of cuts in tax rates argue that that would cause changes in economic behavior which would increase investments leading to increased employment, incomes and consequently greater total tax revenues. Therefore, cutting tax rates actually benefit the poor since the increase in tax revenues can be used for more social services. Continue reading “Trickle-Down Economy”