December 19, 2020

Trickle Down DID work!

Everyone is richer.  

Recent buzz from London is that a study shows that trickle down didn't work.  However, if one reads the paper, what it says is that changes to taxes on the top 1% did not lessen income inequality.  But, and this is the big but, trickle down was never claimed to be the secret to reducing income inequality  It was positioned as the best way to improve all levels of income.  And guess what?  It does.  Yes, the highest earners are making 1.7x's more in income.  But the lowest earners are making 1.2 x's more.  And that's in the face of the least skilled workers having to compete with a developing world. 

The rich already pay more than their fair share.

And, as is clear, the highest earners are already paying 1/3 of their income to the federal government, not to mention additional taxes they pay at the state level.  How much more should someone pay to the government for their value creation.

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