To put it bluntly, the theory of trickle-down economics is based upon the idea that the best way to help the poor and middle class is by allowing the rich to hoard more money. Sounds incredibly stupid, right? It should — because it is.
As someone who worked in the service industry for over eight years, and I’m sure others who have as well can attest to, often times the wealthy are the least generous. In my years waiting tables and bartending, often I found wealthy people to be some of the worst tippers — and biggest pains in the asses — I dealt with. In fact, many of the wealthy people I’ve met are cheap bastards when it comes to spending their money on anything but them. Sure, they’ll buy a massive house, ultra-expensive car, and sip on Fiji water with two hands while puckering their lips like it’s too sour — but then they’ll leave a five percent tip at a restaurant or stiff a valet.
This idea that the rich and powerful want to “spread their wealth” to the rest of us is ludicrous.
Let’s look at the propaganda Republicans use about the corporate tax rate they’re trying to cut down to 15 percent from 39.1 percent. While 39.1 percent sounds high, most corporations haven’t been paying that.
According to the CBO, the effective corporate tax rate, which factors in loopholes and deductions, is around 18.6 percent. Moreover, in 2017, Fortune 500 companies dodged an estimated $767 billion in taxes by stashing around $2.6 trillion of their profits offshore.
So let me get something straight. The GOP’s argument is that cutting the corporate rate to 15 percent will entice these companies to bring all this money back that they’ve stashed offshore — because the new rate’s going to be 3 percent lower than what the previous effective rate was? Are you kidding me? These corporations aren’t going to bring that $2.6 trillion back to the United States so they can pay hundreds of billions of dollars in taxes on it and the GOP’s plan doesn’t eliminate all the loopholes and deductions they were using to stash this money overseas.
I think it’s also important to note that, while the effective rate before was 18.6 percent, some companies paid even less than that.
Republicans are claiming that companies are going to want to now pay taxes on money they weren’t previously paying taxes on simply because the new rate will be lower.
Again, if that sounds stupid, it should — because it is.
Then there’s the notion that “tax cuts create jobs.”
You don’t need to be an economics expert to know that demand creates jobs. A company isn’t going to create jobs it doesn’t need simply because it got a tax break. When demand dictates a company needs to create jobs, that’s when it’s going to create them.
As for wages, considering we’ve been living under the notion of trickle-down economics for nearly 40 years, yet income inequality during that time has reached levels not seen since prior to the Great Depression, I think it’s safe to say that tax cuts don’t translate to higher wages for workers, either.
Over the last four decades wages, raises, benefits, health care, pensions, retirement accounts — nearly everything has gotten worse for the average American worker, not better.
All the while the rich are richer than they’ve ever been before.
That means, based on the theory of trickle-down economics, since the wealthy are flourishing, the rest of us should be, as well — except we know that’s not what has happened. While the rich have gotten richer, out-of-control income inequality has made most Americans poorer.
It’s been nearly 40 years since trickle-down economics has been forced upon the American people and the opposite of what Republicans have claimed would happen has happened. How many more decades need to go by before conservative voters realize what a scam it is?
When these tax cuts Republicans are going to pass fail to create historic economic and income growth, while adding trillions to the debt — which is what’s going to happen — what’s the next “plan” from the GOP going to be to “grow the economy,” more tax cuts?
At this point, after nearly four decades of trickle-down economics proving time after time that it’s nothing more than a con perpetuated by the rich, you have to be willfully ignorant and stupid to still believe that tax cuts for the wealthy are going to benefit the rest of us.
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