You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

David Cay Johnston: "Trickle-Down Trouble" [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Editorials & Other Articles Donate to DU
alp227 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Apr-24-11 06:40 PM
Original message
David Cay Johnston: "Trickle-Down Trouble"
Advertisements [?]
Edited on Sun Apr-24-11 06:45 PM by alp227
This article was published in the April 13-April 19, 2011 edition of Metro Silicon Valley in print as "Tax facts: The truth about who pays and who doesn't in America's bracket racket".

For three decades, we have conducted a massive economic experiment, testing a theory known as supply-side economics. The theory goes like this: lower tax rates will encourage more investment, which in turn will mean more jobs and greater prosperity, so much so that tax revenues will go up, despite lower rates. The late Milton Friedman, the libertarian economist who wanted to shut down public parks because he considered them socialism, promoted this strategy. Ronald Reagan embraced Friedman's ideas and made them into policy when he was elected president in 1980.

For the past decade, we have doubled down on this theory of supply-side economics with the tax cuts sponsored by President George W. Bush in 2001 and 2003, which President Obama has agreed to continue for two years.

One would think that the question of whether this grand experiment worked would be settled after three decadesthat the practitioners of the science of economics would look at the data and pronounce a verdict, the way Galileo and Copernicus did when they showed that the earth revolves around the sun. But economics is not like physics. Tax policy is something the framers left to politics. And in politics, the facts often matter less than who has the biggest bullhorn.

The same mad men who once ran campaigns featuring doctors extolling the health benefits of smoking are now busy marketing the dogma that tax cuts mean broad prosperity, no matter what the facts show. As millions of Americans prepare to file their annual taxes, they do so in an environment of media-perpetuated tax myths.

He also mentions Donald Trump:

I have Donald Trump's tax records for four years early in his career. He paid no taxes for two of those years. Big real estate investors enjoy tax-free living under a 1993 law President Clinton signed which lets "professional" real estate investors use paper losses like depreciation on their buildings against any cash incomeeven if they end up with negative incomes, like Trump.

Full story:
Printer Friendly | Permalink |  | Top

Home » Discuss » Editorials & Other Articles Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC