05-12-2011, 05:52 PM
Here's an interesting perspective:
http://www.nytimes.com/2007/04/06/opinio...tlett.html
The weak link in the Trickle Down chain as proposed by today's Republicans is that an integral part of the idea is that businesses, thriving with less tax burden, increase production and thereby increase jobs which then leads to lower unemployment and a work force which is in a position to negotiate better wages which means everyone has a share*. HOWEVER these current Golden Showers advocates want to bust unions, end collective bargaining, and run lean mean corporations with no intention of staffing up to the levels seen in the Good Years.
So while the original supply-side concept, at least as explained the author of the opinion piece, might have had merit, its Millennial incarnation as Cut Taxes While Cutting The Options of the Workforce is crap on a stick.
* Thus Spake Milo Minderbinder
http://www.nytimes.com/2007/04/06/opinio...tlett.html
Today, supply-side economics has become associated with an obsession for cutting taxes under any and all circumstances. No longer do its advocates in Congress and elsewhere confine themselves to cutting marginal tax rates — the tax on each additional dollar earned — as the original supply-siders did. Rather, they support even the most gimmicky, economically dubious tax cuts with the same intensity.
The original supply-siders suggested that some tax cuts, under very special circumstances, might actually raise federal revenues. For example, cutting the capital gains tax rate might induce an unlocking effect that would cause more gains to be realized, thus causing more taxes to be paid on such gains even at a lower rate.
But today (2007) it is common to hear tax cutters claim, implausibly, that all tax cuts raise revenue. Last year, President Bush said, “You cut taxes and the tax revenues increase.” Senator John McCain told National Review magazine last month that “tax cuts, starting with Kennedy, as we all know, increase revenues.” Last week, Steve Forbes endorsed Rudolph Giuliani for the White House, saying, “He’s seen the results of supply-side economics firsthand — higher revenues from lower taxes.”
The weak link in the Trickle Down chain as proposed by today's Republicans is that an integral part of the idea is that businesses, thriving with less tax burden, increase production and thereby increase jobs which then leads to lower unemployment and a work force which is in a position to negotiate better wages which means everyone has a share*. HOWEVER these current Golden Showers advocates want to bust unions, end collective bargaining, and run lean mean corporations with no intention of staffing up to the levels seen in the Good Years.
So while the original supply-side concept, at least as explained the author of the opinion piece, might have had merit, its Millennial incarnation as Cut Taxes While Cutting The Options of the Workforce is crap on a stick.
* Thus Spake Milo Minderbinder