Tax cuts for the lower classes/consumers increasing their flow of discretionary income. Lower classes tend to spend a larger % of their income than upper classes, so a larger chunk of the tax cut will go directly back into circulation and into the businesses that consumers choose to spend their money in. These businesses, benefitting from increased revenue and demand, in turn increase their supply by hiring more people, giving employees raises, or increasing the quality of their products to attract a larger share of the growing demand.

But does it work?

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Potential problems arise when you realize that the economy of the normal 1st world country is not a closed economy. Lower income families tend to spend more money on foreign goods, usually goods from China, Taiwan, India, and other places where labor is cheap. More money flows out of the country and since you are taxing businesses higher, those businesses will have incentive to leave.

There is no easy answer to the problems of the economy. Trickle down doesn't give much at all to those who need it, and trickle up increases our trade deficit.

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Obama/Biden 2008

It's at least as conceivable as the trickle down theory, with one exception I can think of of, a larger percentage of people will have money in their pocket to spend as they please without having to worry if it trickles down.

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Cost of War in Iraq Barack Is Beautiful

Whose fault is that? If US companies didn't look for cheap labor or goods overseas, people here wouldn't be losing their jobs, having to take service ones, rather than keeping good paying manufacturing jobs.

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Cost of War in Iraq Barack Is Beautiful

Yeah, and if we could pull oil out of our butts, we wouldn't have an oil crisis.

The fact is that when someone who is nearly out of money has a choice between something that costs $10 and was made in China and something that costs $15 and was made here, they will choose the Chinese product. That is good for the Chinese economy, not ours.

It's not about assigning blame, it's about dealing with reality and trying to find a solution.

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Member, Politicalforum Pro-Nuclear Coalition

Obama/Biden 2008

how about the government cutting back and everyone will have more , trickling up and trickling down , seems better to me?

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Aint but three things in this world thats worth a solitary dime,
But old dogs and children and watermelon wine.
Tom T. Hall
http://www.politicalforum.com/group.php?groupid=43

That's pretty hard to quantify. I would think that a good place to look is the overall performance of the economy following large tax cuts on the middle class. But those cuts didn't happen in a vacuum. Ususally, they were accompanied by cuts for the wealthy and other world events that influenced the overall performance of the economy. I don't know that there has ever been a tax cut that applied only to the middle class, or a tax increase for that matter.

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Tax & Spend > Borrow & Spend any day.

I reject your reality and substitute my own.

C2H5OH - the cause of and remedy to all problems.

I never got s job from a Bum.

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"The only title superior to President of the United States of America is Citizen."

Did you know the word "gullible" isn't in the dictionary?

Tresha quote:
I'm not sure why you are under the impression that because someone has mental health problems, they are incapable of intelligent and rational thought.

It doesent work for the following reasons.

1) More money at the expence of others causes more inflation. Whenever you take money from business they only transfer it over to the consumer. So the end result is that you both have more money and pay for more expensive goods and services as the economy slows.

2) Companies and people who are forced to pay a welfare check to others dont get their money back no matter how you slice the pie. The people who get their money dont spend it on goods and services that come back to the small business owners.

3) Companies and people who are forced to pay for the welfare of others end up fireing workers, cutting healthcare plans, and moving overseas. Furthermore people who have wealth are less likely to buy luxery iteams that they can only afford causing job loss and destruction of thoes business.

4) People who get free money off of the sweat and determination of others become dependant on that money and are less likely to strive to make a proper living.

5) When people who make $250,000 a year get more money if they make $225,000 a year then whats the purpose of striving to make more money? Its class warfare and if they have earned their pay then by god let them keep it! They strived for it, sweated for it, and busted there ass for it! It belongs to them! I know your jelause that they worked harder than you as you sat on your ass and did nothing but that doesent mean that you should steal from them!

6) people who invest for retirement and make over $250,000 a year, spend less money in the market causing the market to grow at a much slower rate. When the market grows at a slower rate so does jobs, and worker pay.

Concludsion: If you dont have the determination and drive to make it on your own than that is your right as an American. However you do not have the right to steal the rights and priviliages of others in order to gain non existant rights and priviliages for yourself. We have the right to lofe liberty and the persuit of happyness. Not the guarentee of happyness sponsered by the hard work of others!

The last clause of the 5th Amendment:

nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

The words of our founding fathers:
We hold these truths to be self-evident: that all men are created equal; that they are endowed by their Creator with certain unalienable rights; that among these are life, liberty, and the pursuit of happiness.

The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.
Thomas Jefferson

Rightful liberty is unobstructed action according to our will within limits drawn around us by the equal rights of others. I do not add 'within the limits of the law' because law is often but the tyrant's will, and always so when it violates the rights of the individual.
Thomas Jefferson

The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself.
Benjamin Franklin

The rights of persons, and the rights of property, are the objects, for the protection of which Government was instituted.
James Madison

As a man is said to have a right to his property, he may be equally said to have a property in his rights.
James Madison

The diversity in the faculties of men, from which the rights of property originate, is not less an insuperable obstacle to an uniformity of interests. The protection of these faculties is the first object of government.
James Madison

The personal right to acquire property, which is a natural right, gives to property, when acquired, a right to protection, as a social right.
James Madison

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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.

John Adams

http://www.freedomagenda.com/iraq/wmd_quotes.html

I believe it's true both ways. tax breaks to the top could just mean that the top outsources and buy's more products from China, Taiwan, India and other places also where labor is cheap and sells that to the american consumer. In either case, trickle up or trickle down, there is no reason to believe, as far as I know, that one will cause more production within the US boundaries than the other.

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True knowledge exists in being aware of what you don't know.