Why is Catherine Wheel more interesting when he's trying to be boring than when he's sincerely discussing things that interest him, like comparing songs track-by-track or whatever? I'd be glad to discuss trickle-down economics and tax brackets.
"Trickle-down economics" is a term used for supply-side economics, which is the belief that reducing that tax burden on corporations and the richest in society will benefit society as a whole, as the extra wealth they save will "trickle down" to the poor and middle class in the form of more jobs and higher wages paid by the richest, who are using the money for economic development.
Despite being favoured by right-wing Chicaco- and Austrian-school economists such as Milton Friedman, empirical evidence has shown it not to be very effective at raising wages or stimulating economic activity. This is because rather than becoming "job creators" when given extra money, corporations and the rich tend to put the money into growing their own wealth through investments, share repurchases, and trust funds. Economic activity and jobs are better stimulated by demand-side economics, in which progressive taxation is used to decrease the tax burden on the poor and middle class, and to shift it toward those who can afford it. This is because the poor and middle class, not having an excess of wealth to store away, tend to put their money back into the economy. This increase in demand creates more jobs as supply hires more labour to satisfy the demand.
Some may feel that making those who pay more money pay a higher tax percentage is unfair, and will disincentivize work. Why work more if working more will only mean that you pay more? This belief comes from a fundamental misunderstanding of how tax brackets work. Those who earn enough to enter the next tax bracket will not have their entire income taxed at the higher percentage, but rather, only every extra dollar beyond a certain threshold will be taxed at the higher percentage. Earning more money will still allow them to keep more money. There is little empirical evidence to suggest that people actually stop working when they are taxed more. Moreover, wages are not proportional to the effort required for or the difficulty of work, and earning more does not necessarily mean that one "works harder" than one who earns less. This is evidenced by the fact that the gap between the highest earners and lowest earners has been increasing over the decades, with top earners making several times more than top earners did in the past, despite no increase in work difficulty.
I'm glad you asked this question, Catherine Wheel. Let us know about whatever interesting questions you've got!
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