Quote:
Originally Posted by PepsiFree
So you didn't read the actual study...
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Yes I did. I don't see how you can just equate "major tax cuts" with all trickled down economics. There's a lot more to the concept that just tax cuts.
Even the study itself doesn't relate to trickle down economics. All it says is that certain types of tax cuts for the rich don't necessarily produce positive observable changes in equality. That's assuming you accept their methodology.
I'd argue their is a fundamental flaw in their methodology. They have not accounted for the system of tax sheltering I'd discussed. They've just looked at pure tax cuts, with any accounting for the nature of these tax cuts.
Trickle down economics only works when the money goes back into the system. The concept of trickled down economics isn't about just giving tax cuts to the rich. It's about directed tax policy to encourage economic growth. So tax cuts can be either directed at solving or exacerbating problems of wealth inequality. The current system of personal corporations and low interest rates is, in my opinion, the major driving factor towards this inequality. This study seems to focus purely on marginal tax rates and not how they are applied.
Once again, I'd state this study has as much in common with "trickle down economics" as stating that we should stop funding health care because communism doesn't work.