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Related: About this forumRobert Reich on Tavis Smiley - must watch TV
sorry - can't seem to embed the video, but it is at the link
http://video.pbs.org/video/2276247187
1StrongBlackMan
(31,849 posts)Sherman A1
(38,958 posts)nanabugg
(2,198 posts)BlueStreak
(8,377 posts)people would explain the simple truth as to why "trickle down" doesn't work. It really isn't that complicated.
When tax rates are higher, that is an incentive for businesses and wealthy individuals to INVEST in the economy. When you invest in a new business or an expansion of an existing business, that investment is tax-deductible. If tax rates are higher, that means the government is essentially matching your investment.
When tax rates on corporations and the wealthy are low, that is an incentive for them to park their money and not invest in their businesses. That is the most basic reason why trickle-down never works.
And likewise, when business tax rates are higher, that means the effective cost of hiring employees is lower, because the cost of salaries and benefits is tax-deductible.