For the past 40 years, most of the GOP’s economic platform has been centered around what’s most commonly known as trickle-down economics. It’s the belief that cutting taxes will spur economic growth, create jobs, and make everyone’s lives a whole lot better.
Except four decades living under this economic philosophy has proven what an absolute scam it is.
Since then, the United States has:
- Seen our national debt climb to nearly $20 trillion.
- Only seen a budget surplus in 1999, 2000, and 2001 — under Bill Clinton, a Democrat who raised taxes and presided over historic economic growth.
- Experienced five recessions, all occurring while a Republican was in office, including the worst economic crash in nearly a century.
- Seen the poor and middle class falling further behind, while the rich are wealthier than they’ve been since before the Great Depression.
Yet despite all the facts to the contrary, Republicans continue to insist that tax cuts are the driving force behind the economic growth and paying down our national debt.
Well, on Friday, Pulitzer Prize-winning fact-checking site Politifact delved into a statement made by CNN economic analyst Rana Foroohar who said:
The Trump administration will say, ‘Well, hey, tax cuts are going to create growth, growth is going to create revenue, that’s going to offset all this deficit.’ Well, there’s no real evidence in the last 20 years that that has happened.
After a fairly extensive investigation where they contacted several economic experts, Politifact rated this statement as “True.”
Here’s what they ultimately concluded:
We searched high and low and found no economic experts who could point us to evidence of tax cuts fully paying for themselves. Neither the modern historical record (using fair benchmarks) nor government analyses we looked at supported the claim that tax cuts create enough growth to eventually offset lost revenue. On the contrary, there’s evidence that tax cuts may actually hinder economic growth.
Not only did they not find any evidence where tax cuts fully paid for themselves, but they actually found evidence that cutting taxes may hurt economic growth.
Part of the evidence they used to come to that conclusion came from Edward Kleinbard, a professor of law and business at the University of Southern California, who pointed out a few facts concerning taxes and our economy since 1981:
According to Kleinbard, the 1981 tax cuts triggered massive federal deficits and were largely reversed within three years. The Tax Reform Act of 1986 was basically revenue neutral, he said, meaning tax cuts were virtually offset by spending cuts. He added that President Bill Clinton’s tax hike was followed by robust growth, while the George W. Bush tax cuts led to anemic growth.
I know it’s cliché to say it, but this is not rocket science.
While Republicans won’t admit it, even after Bill Clinton and Barack Obama’s tax hikes, we were still living in a country governed by historically low taxes. That’s why I like to point out that any time a Republican complains about the economy, or stagnant wages, all they’re really doing is admitting that trickle-down economics is a scam. If it weren’t, based upon Republican propaganda, we shouldn’t have experienced any sort of major recessions or a major economic crash, and our national debt damn sure shouldn’t be nearly $20 trillion. All the while poor and middle class Americans continue to struggle, while the richest among us are doing better than ever.
Trickle-down Economics: The belief that the poor and middle class will be better off by giving the rich more money.
If that sounds ridiculous, it should, because it is. But that’s essentially the basis for the entire GOP economic platform and Donald Trump’s disastrous “tax plan.”
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