“There you go again,” to quote President Reagan. The Republican Congress is working on a tax code revision for the taxpayers in the U.S. They are again extoling the economic concept which endorses the idea that if we take care of the rich they will take care of the rest of the people. That concept with the dubious euphemistic name of “trickle down” purportedly will raise the income of all workers in the country.
This concept is espoused by the wealthy to justify the massive tax breaks given them by saying it will immediately trickle down to the masses. Well, this concept has, at best, shown a questionable success rate in recent history, back to the Reagan administration.
Humorist Will Rogers used the phrase as a joke to describe its economic benefits back in the ‘30s.
With this in mind, I would like to suggest we try to trickle up this time around. There is ample evidence that trickle down has not worked, so what do we have to lose? In my concept of trickle-up economics, the tax code should give the bulk of the tax reductions to the working class. That would put more money into their hands, the working class people in the country. When this happens, the workers would use that windfall to purchase more goods and services and would stimulate the economy and raise the income of the rich who actually provide those very goods and services.
Why do all the tax reform ideas always start with the wealthy and then go down to the masses? There are far more workers on the bottom of the economic working class than there are on the top of the wealthy class.
We can also look at the death tax which the wealthy are in favor of repealing. Right now if a person inherits $5,500,001 they will be required to pay an inheritance tax on that $1, which could set back that one person close to 40 cents. That tax, even as it is set at $5.5 million, will clearly only impact the very wealthy few people in the country, and then, only if they cannot reduce the figure by other dodges.
So, with this in mind, let’s demand that Congress and all voters take an honest look at the tax code and examine exactly who it will benefit the most. Then let us decide if it really should be passed as it is now configured, which is clearly skewed in favor of the wealthy.