I've seen couple arguments in this forum regards to the trickle down theory.
They claim that with the tax deductions for the rich, the economy will see prosperity and the government will ultimately benefit. They have raised a good point here and provided evidence which suggests that with the tax deduction, the government had seen boost to their tax revenue.
But was it all "awesome" as fiscal conservative would claim? Here are my argument against trickle down theory.
1. Though the nation raised its GDP to a formidable degree, the average income for Americans stayed the same or even less ($1000/yr average). All the while, the rich increased their wealth by triple or double digit.
(No excuse for Canada as well. Its pathetic)
2. Declining manufacturing sector (automobiles etc) went unnoticed.
3. Average individuals credit debt spiked (and the housing credit l.o.l)
They claim that with the tax deductions for the rich, the economy will see prosperity and the government will ultimately benefit. They have raised a good point here and provided evidence which suggests that with the tax deduction, the government had seen boost to their tax revenue.
But was it all "awesome" as fiscal conservative would claim? Here are my argument against trickle down theory.
1. Though the nation raised its GDP to a formidable degree, the average income for Americans stayed the same or even less ($1000/yr average). All the while, the rich increased their wealth by triple or double digit.
(No excuse for Canada as well. Its pathetic)
2. Declining manufacturing sector (automobiles etc) went unnoticed.
3. Average individuals credit debt spiked (and the housing credit l.o.l)