Azelma wrote:
Eturnalshift wrote:
I've played Sim City. I know lowering taxes will stimulate economic growth but, as the downside, the deficit would grow if spending is unchecked. Creating growth is how the government creates revenues with lowered taxes.
See the problem with cutting taxes is that really, only the top 1-2% see actual benefits from it. For example, after the Bush tax cuts I think my parents received like $600 extra dollars from their tax returns. Not exactly ground breaking or something that would make them really stimulate the economy with a purchase (as in buying a car or home or something)
I feel like the "trickle-down" theory is a bit flawed. The idea that if the upper class has more money in their pocket they will "pass it down" just doesn't seem like it works in practice. All the upper class people I know will just stuff the extra money in their bank accounts or buy a porche or something. Not exactly things that would directly benefit someone working minimum wage.
I have to agree. The concept of trickle-down is correct in theory just as much as (here it comes!) communism is correct in theory. If everyone does their part and greed plays no factor then the theory would work.
The idea of a "trickle-up" to me has a bit more of a basis in logic because of the thought process behind it. More money for the lower-end allows them to spend more. Most business owners are in the upper ends and the increased in spending also creates a bigger revenue for them. While there are flaws still, the basic idea to me has more merit than passing the money down the chain.
