The proposed purpose of the Republican tax reform is to spur corporations to invest in expanding productivity, resulting in an alleged economic expansion that will raise the national gross domestic product.
According to their claims the average American will receive a $4,000 annual income increase.
Often cited by tax reform proponents is that the U.S. has the highest cooperate tax rate in the western world at 35 percent. Yet all economists note that the nominal rate, the rate actually paid in taxes by corporations, is just over 18 percent.
President Ronald Reagan passed tax reform claiming “trickle down” benefits to the average and poor Americans. No financial benefit resulted to the average American, rather the wealthiest became richer.
David Stockman was the author of the trickle-down theory, and in later years disavowed the concept as a failure. Ross Perot called it “voodoo economics.”
The Republicans state the tax refund is to benefit the middle class. With the top 10 percent growing richer daily, the middle class has decades of stagnant wages and harder times to make ends meet.
There are hundreds of thousands of Americans fighting daily to pay the bills hoping for a better life for their children. Many work 40-hour weeks earning minimum wage while hoping for a second job to help.
Rather than trickle down, it is time to raise the economy from the bottom up. Anyone working a 40-hour week should be paid a living wage of $15 an hour. The more money the poor and middle class families have the more they will spend.
Their increased economic wealth will demand higher productivity, increasing employment, increasing taxes to the government, and will make the wealthier richer.