"TRICKLE DOWN THEORY" AND "TAX CUTS FOR THE RICH" BY THOMAS SOWELL
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"TRICKLE DOWN THEORY" AND "TAX CUTS FOR THE RICH" BY THOMAS SOWELL PDF
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About the Author Thomas Sowell is the Rose and Milton Friedman Senior Fellow on Public Policy at the Hoover Institution, Stanford University. Among his published works are Basic Economics, Late Talking Children, and Race and Culture. He has also published in both academic journals and the popular media including Newsweek, Forbes, the Wall Street Journal, and 150 newspapers that carry his nationally syndicated column.
"TRICKLE DOWN THEORY" AND "TAX CUTS FOR THE RICH" BY THOMAS SOWELL PDF
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"TRICKLE DOWN THEORY" AND "TAX CUTS FOR THE RICH" BY THOMAS SOWELL PDF
This essay unscrambles gross misconceptions that have made rational debates about tax policies virtually impossible for decades. ● ● ● ● ● ● ●
Sales Rank: #100807 in Books Published on: 2012-09-01 Original language: English Number of items: 1 Dimensions: 9.00" h x .10" w x 6.00" l, .10 pounds Binding: Paperback 20 pages
About the Author Thomas Sowell is the Rose and Milton Friedman Senior Fellow on Public Policy at the Hoover Institution, Stanford University. Among his published works are Basic Economics, Late Talking Children, and Race and Culture. He has also published in both academic journals and the popular media including Newsweek, Forbes, the Wall Street Journal, and 150 newspapers that carry his nationally syndicated column. Most helpful customer reviews 289 of 316 people found the following review helpful. Concisely exposes a common political lie By Gregory Adams Sowell outlines the evolution of "Trickle Down Theory." His main points are that: 1. After World War I, Democrats and Republicans and even John Maynard Keynes, agreed that tax rates were too high. Because of the high rates of taxation, rich people tended to put their money into tax shelters, rather than investing in business ventures that employ people. This was not a politically divisive issue at the time. 2. No politician nor economist ever advocated anything called the "trickle-down theory." In fact, when tax rates are reduced, money is taken out of tax shelters and invested in business ventures that hire workers. The money goes directly to those workers, in hopes that the business will succeed and money will Trickle Up to the investors. FDR coined the phrase "trickle-down" as an epithet for his opponents. 3. The tax debate eventually became a political issue, with Democrats (but not JFK) advocating higher tax rates and Republicans advocating lower tax rates. At that point, Democrats started accusing Republicans of wanting to decrease tax rates because they only care about the rich. This
is pure demagoguery; both parties previously admitted that when tax rates are too high, it diminishes revenues to the treasury and hurts the common working man who needs a job. The pamphlet is short (main text 13 pages), to the point and very readable. It's replete with numerous little-known facts about the politics of our past and even a little criticism of popular history texts. 88 of 96 people found the following review helpful. An excellent use of half an hour By Leib Gershon Mitchell This is an excellent use of 30 minutes and for only a few bucks, you can't go wrong. General impressions on this short piece: Yes! Tax rates are symbolic, and nominal rates of tax have almost nothing to do with actual tax collection. Taxable income is different to gross income, and this is a distinction that is lost on much of the electorate. He could have gone a bit further in his discussion of tax exempt securities and explained why the government is not going to make them taxable any time soon (i.e., they need money from somewhere to finance their schemes and they may be dishonest and incompetent-- but they aren't stupid/ self-destructive). The net effect of higher taxes on the wealthy is to tax lower income of people MORE because the value of tax exempt securities is higher to high earners. There are two very different visions with respect to earnings spillover of wealthy people vs. different decisions generating more wealth for EVERYONE, and people keep talking past each other because they don't realize the details of their vision. Because this broadside is so short, it costs nothing to reread it a week or so later in order to pick up the last few bits of information out of it that you might not have been able to pick up on the first pass. There are also MANY references, and so it is possible to look further into this topic if you care to. (I don't, as I'm prepared to take Sowell at his word.) Verdict: Highly recommended. Worth the time. Worth the money. 75 of 87 people found the following review helpful. Straight to the point! By Jamie Hatfield 13 pages of facts and meat. Non-partisan facts about tax revenue and how to create it. Lower taxes increase revenue. Sowell does a great job of distinguishing between the goals of redistribution of wealth and generating tax revenue. Distinguishing the two is essential in making a point. I have already given this book to my 20 year old son and am ordering more to give away. See all 219 customer reviews...
"TRICKLE DOWN THEORY" AND "TAX CUTS FOR THE RICH" BY THOMAS SOWELL PDF
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