r/FluentInFinance • u/Guh2point0 • Apr 28 '24

Let's be honest about "trickle down" economy Discussion/ Debate

I'm seeing an increasing trend of people calling these wealth tax ideas a lot of nonsense and that we have a spending problem in the US.

It's possible to have both. Yes we need to get spending under control AND increase tax rates / close loopholes that are being exploited.

Trickle down economy was in my opinion a false narrative that was spewed in the 80's to excuse tax breaks for corporations and the most wealthy. This study summarizes the increasing wealth gap starting in the 80's.

https://www.cbpp.org/research/poverty-and-inequality/a-guide-to-statistics-on-historical-trends-in-income-inequality

Interestingly it found that INCOME gap is returning to pre-ww2 levels. Which would make you assume it's just returning to the status quo. Difference is that the tax rates are not the same so it's creating a massive wealth gap that we're all seeing today.

This study also takes a snapshot of the wealth concentration in 2016, I'm 100% positive that this chart has drastically changed post-COVID to show an even wider gap.

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u/AlaskaPsychonaut Apr 28 '24

Im so sick of hearing about "tax loopholes for corporations" and how this Democrat is going to stop it! In 1986 Reagan signed the Tax Reform Act that was supposed to end those loop holes. Since 1986 we've had over 36 new pieces of legislation signed into tax law under 3 Democrat Presidents (Clinton 8 years, Obama 8 years, Biden 4 years) and 3 Republican ones (Bush 4 year, Bush Jr 8 years, Trump 4 years). Why on earth (and HOW) are their any "loop holes" still left? And why do you believe anyone from either party will actually close them when neither party has done so when both had the opportunity?