Question:

Does the trickle down effect involve taxing the poor/middle class?

by Guest65073  |  earlier

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I'm not trying to state my opinion in any way. I am writing a paper and I just want to know if part of the trickle down effect is taxing the poor or if it just has to do with tax breaks to the rich. If you NEED to give your opinion, can you answer the question impartially and then go on your rant, if you must????????

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  1. Trickle down effect does not include taxing the poor directly I don't believe. If I am not mistaken the trickle comes in the form of corporate taxation. In other words if the government decides to tax every bar of soap 10 cents then the manufacturer of the soap will just raise the price by 10 cents to maintain their profit margins in order to keep from losing 10 cents on every bar. Since the poor buy soap then they are indirectly being taxed 10 cents per bar of soap. This effect is felt the most on fuel taxes since this leaks into every product purchased in the US. The other Way this would work is that higher corporation taxes leads to downsizing of work force with increased demands on the remaining work force. For example if you have three people working in an office and a janitor then when taxes go up the janitor gets laid off and the office people have to clean up after themselves.


  2. NO the trickle down effect did NOT involve raising taxes on anyone.. it involved cutting taxes across the board.. specifically on leveling out the taxes on the rich getting rid of the 50+% tax brackets (yes at one time we had tax brackets where the government got literally HALF of what people made)

    the idea was the money they got back and didn't pay into taxes they would invest into business which would spark the economy.....

    unfortunately as soon  as the results start to come... the next generation of socialists take over.. and ram the taxes back up.

  3. I agree .

  4. Example-  We used our corn that feed us, cattle, chicken. it is a main ingredient in a lot of foods.  We also export it.

    Then our Democratic Congress decided to give tax breaks to corn farmers and produce ethanol instead of using it for food.  So the trickle down effect is that our food prices has gone through the roof and those poor countries having to pay more for corn are now disliking us cause we are using food for fuel.

  5. It definitely involves taking more from the poor/middle class....where else are you going to pay for the government if you aren't taking it from the one group that can afford it?

    If you want to know how well things 'trickle down', just look at where wages have gone since Reagan took office.

    Since he took office, our productivity...what each of us accomplishes at work (basically), has gone up drastically.   Thanks to computers, robotic machinery and technology in general.....mostly.    Overall, this amounts to great deal more earned.    

    Stilll, with this major increase overall......The wages for everyone but the top 1% of Americans has actually gone down....and drastically so.     The rich have received all the benefits of productivity gains.....while everyone else has actually LOST money in that same time period.

    Before Reagan, most families relied on ONE income.  Now you'll see that most families have two parents that work, and very few can save money.....many are have significant debt.

    The Rich do fine though.   Again, look where ALL the games of the last 30 years have gone.  

    .............

    Another factor to look at is Reagan (and Bush's) concept of 'STARVE THE BEAST' (Google it).   This is a government policy where massive budget deficits were DESIRED.   They figured that by spending the government into debt, there wouldn't be any push to use any budget surplus on 'wasteful' things like health care or education.    

    But, no one is going to want to cut things the government scares us into overspending on, such as Defense....where all the money goes back to the rich investors in the defense industry, rather than 'wasteful' programs like health care or education.

    Needless to say, this is a horribly irresponsible system.    They put our government harmfully in debt in order to give massive handouts to the wealthy.....all while the middle class (the vast majority of American's) can't afford health care, find a good job or make enough to make ends meet.

    PS.....watch the level of thought put into the pro-Trickle Down comments too.   You'll find that most people that support this don't have any clue.  They are in lock-step with their beliefs and don't let any facts get in the way of them.   Thus they lack the ability to articulate anything beyond mantra......'low taxes are good'.

  6. Trickle-down worked under JFK, Ronald Reagan, and is working again under Bush.

    Those "evil" rich people are the ones who INVEST... who START businesses that produce goods/services and create jobs.... they invest in Real Estate that provides affordable quality housing....

    As JFK said, "a rising tide lifts all ships".   When you support the "big guy".... whether a "rich person" or perhaps a large operation (like building the Hoover Dam).... the effects of "progress" affect EVERYONE for the better.

    Without these "evil rich" people.....  most people would be out of a job.

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