Learn about Trump’s tax plan and why trickle down economics don’t work
- By Jon Jordan
Hey everybody! Today’s act is education. We’re moving into the home stretch on Trump’s 100 days in office. One of his biggest promises during the campaign was tax reform, and looks like he’s trying to get to it right at the wire.
Unfortunately, the tax plan that the administration has released is nothing more than a set of bad idea bullet points. The biggest piece in it is reducing the corporate tax rate from 35% to 15% without anything to make up the difference in the federal budget.
His position is that the companies will reinvest the money back into the economy to create jobs for people. That would be great, but any economist (regardless of political affiliation) will attest that trickle down economics has been proven not to work that way. Especially the statement that “the tax cuts will pay for themselves and then some” by providing economic growth. Again, economists have found that tax cuts AT MOST provide 1/3 of the return required to pay for themselves.
This is a super complicated issue. So I recommend reading these two articles.
The first is an overview of the tax plan:
The White House is banging the drums that President Trump is doing something big again ahead of his 100th day in office…www.npr.org
The second provides more detail about the effects of trickle down economics: