The House has passed its tax bill, and it's based on one organizing principle: that people with more money can do the most for the economy.
Of the $1.5 trillion in deficit financed tax cuts in this bill, the overwhelming majority of the benefits accrue to corporations and the top one percent of income-earning households. Exact numbers vary, but some reviews suggest that as much as 80% of the benefits will accrue to America's wealthiest households. A recent analysis from the Tax Policy Center concluded that the after-tax income of the richest 0.1% will grow by 3% due to this bill, more than double the gains of the middle class.
This is not an accident. It is a critical element of supply side economics.
Supply side economics, a major plank of the conservative movement since at least the early 1980's, argues that production and capacity drive economic growth. As a result, policies which increase investment in and development of business will spur economic growth overall. On this basis conservative policymakers have put together a tax bill which grants the overwhelming majority of its benefits to the already wealthy. Here are five reasons why proponents argue that will work on everyone's behalf, and five reasons why most economists say it won't.
Think about these tax strategies.
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