Study: Tax Cuts for the Rich Don't Spur Growth

Before anyone believes this garbage please know that in periods of "high personal tax rates" business owners declared their income through their companies thereby lowering their tax rates. You would have a company car, company vacation, company dinners, you can even make it company policy to pay for the employees children college education, etc...

To understand the tax implications no economic growth you have to look at the tax payments as a percentage of GDP as well as compliance costs. In the US tax payments have held steady at about 18% of GDP since WWII until recently.

There's so much evidence to the contrary, even Obama's own counsel of economic advisories share the view that tax cuts stimulate economic growth. Christina Romer, his former advisor wrote a paper on the subject.

It has always struck me how anti-free market the idea of trickle down economics is.

After all, one justification of the free market is that those products and producers who are preferred by the people and therefore create a better world win out in the market place because buyers vote with their wallets.

For that to work properly, money must be available to the people so that the so-called "job creators" can compete for that money. In other words, trickle down has it exactly wrong, at least if your objective is to have a free market that provides the products and services that people desire.