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    "Trickle Down Theory" and "Tax Cuts for the Rich"
    "Trickle Down Theory" and "Tax Cuts for the Rich"
    "Trickle Down Theory" and "Tax Cuts for the Rich"
    Ebook26 pages26 minutes

    "Trickle Down Theory" and "Tax Cuts for the Rich"

    By Thomas Sowell

    4.5/5

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    About this ebook

    This essay unscrambles gross misconceptions that have made rational debates about tax policies virtually impossible for decades.
    LanguageEnglish
    PublisherIndependent Publishers Group
    Release dateSep 1, 2013
    ISBN9780817916169
    "Trickle Down Theory" and "Tax Cuts for the Rich"
    Author

    Thomas Sowell

    Thomas Sowell is a Senior Fellow at the Hoover Institution, Stanford University. He has been a professor of economics at leading American colleges and universities and has lectured in Singapore, Israel, Switzerland, and Germany, as well as across the United States.

    Read more from Thomas Sowell

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    Reviews for "Trickle Down Theory" and "Tax Cuts for the Rich"

    4.5/5

    31 ratings6 reviews

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    • 5/5
      A quick overview of the real life affect of tax cuts on tax revenue and the chief causes behind revenue increase: if the rich don't have to shelter their money from the tax man, they use it to generate more revenue. Tax shelters encourage saving rather than investment to create wealth, which is completely different to the distribution of wealth
    • 5/5
      A fascinating, insightful essay that will educate you on tax rates.
    • 5/5
      Anything by Thomas Sowell is worth reading or listening to (on Youtube). He he takes a couple of common tropes and completely demolishes them. I was aware of the 'trickle down theory' argument against Reagan in the '80s, but I know learn first that this made-up argument goes back much further, to FDR's time, and second (and most important) what actually happened when high tax rates were reduced - and the same thing happened all four times it was done in the last century in America, by Coolidge, JFK, Reagan, and GWB.

      1 person found this helpful

    • 5/5
      Something that everybody should take 30 minutes to read. Examines the intents and outcomes of “tax cuts for the rich” while uncovering some false assumptions about them.

      1 person found this helpful

    • 5/5
      Very concise and straight to the point. Quick and enlightening read.

      1 person found this helpful

    • 1/5
      I didn't quite finish reading it but it seems pretty one sided. It's not just the trickle down money the rich will spend, hoping the working and the poor will get a fraction of the benefits. Other arguments for cutting the taxes are
      a) the government isn't the best steward of your money
      b) you want incentives for entrepreneurs to start businesses
      c) most people will move to jurisdictions where taxes are lower, entrepreneurs included

      If you want communism, look how well it worked out in Eastern Europe and other places.

      1 person found this helpful

    Book preview

    "Trickle Down Theory" and "Tax Cuts for the Rich" - Thomas Sowell

    Trickle  Down

    Theory

    and

    "Tax  Cuts  for

    the  Rich"

    Thomas  Sowell

    H O O V E R   I N S T I T U T I O N   P R E S S

    STANFORD UNIVERSITY      STANFORD, CALIFORNIA

    The Hoover Institution on War, Revolution and Peace, founded at Stanford University in 1919 by Herbert Hoover, who went on to become the thirty-first president of the United States, is an interdisciplinary research center for advanced study on domestic and international affairs. The views expressed in its publications are entirely those of the authors and do not necessarily reflect the views of the staff, officers, or Board of Overseers of the Hoover Institution.

    www.hoover.org

    Hoover Institution Press Publication No. 635

    Hoover Institution at Leland Stanford Junior University,

    Stanford, California 94305-6010

    Copyright © 2012 by Thomas Sowell

    All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission of the publisher and copyright holders.

    First printing 2012

    Manufactured in the United States of America

    Cataloging-in-Publication Data is available from the Library of Congress.

    ISBN: 978-0-8179-1615-2 (pbk. : alk. paper)

    ISBN: 978-0-8179-1616-9 (e-book)

    We fight for and against not men and things as they are, but for and against the caricatures we make of them.

    J.A. Schumpeter[1]

    At various times and places, particular individuals have argued that existing tax rates are so high that the government could collect more tax revenues if it lowered those tax rates, because the changed incentives would lead to more economic activity, resulting in more tax revenues out of rising incomes, even though the tax rate was lowered. This is clearly a testable hypothesis that people might argue for or

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