This week we saw the same dreary scenario played out again. The big tax cuts for business and the wealthy were passed on the claim that this would result in both groups investing more in business, which would result in huge growth in employment and wages, thus increasing tax revenues that would offset the cost of the cuts and thus make it budget neutral
Of course this was bogus from the get-go and everyone knew it. What actually happened was what has happened before. The business beneficiaries of the tax cuts used it to buy back stock and pay increased dividends which enriched the wealthy even more, and the individual beneficiaries took the money and ran, either to their tax shelters or to their yacht dealers. As a result, the deficit ballooned to $779 billion.
The next step was also drearily predictable. Donald Trump asked all the agencies of government to cut spending by 5% while exempting the military. His budget director also blames the deficits on spending on earned benefits like Social Security and Medicare though neither was responsible for the ballooning deficits.
So now money is going to be taken away fro pretty much everyone other than the wealthy to pay for a ballooning deficit that was caused by giving away money to the wealthy.
That’s trickle down economics, folks!