commented on Trickle-Down Economics: Four Reasons Why It Just Doesn't Work
2016-10-05 22:15:36 -0400
This is interesting, and I believe it to be true. After all, how effective can cutting taxes on an incredibly small percentage of us really be? People say “the top 1%” really, it’s smaller than that. Additionally, when tax rates were at 90% in the fifties, the percentage of individuals actually qualifying to pay that amount were virtually non-existent (that and look at the timing, we were experiencing a serious post war boom as one of the only industrialized nations that didn’t have to rebuild after WWII). What this article willingly dismisses is the actual key tenant to trickle down economics. Business tax. If I am paying 65 cents on every dollar to the government to conduct business, I would simply leave and move my headquarters to, let’s say, Ireland where they have a 12.5% tax rate. By the way, this is happening big time (i.e Google, Microsoft, Facebook, Apple etc…). There is a reason why industry starts in this country or Ireland before it travels to the rest of the EU, and that is simply the tax code. Ours is currently better. Socialism works and is really fun and cool for a decade or two, but it collapses as it is doing in Europe (how’s Greece, Portugal, and Spain doing these days? And have you heard of Deutsch Bank?) Even the Scandinavian nations are turning back to the right. Please, I implore all of you, do your own research and don’t get caught up in statistics which are notorious for ignoring the real data points when there is a political platform to protect.