Letter to the editor:

Rethinking the trickle-down theory

Bonny Mercer, Las Vegas

Thursday, Oct. 30, 2008 | 2:02 a.m.

I have been a lifelong Republican, and even admit to voting for George W. Bush twice.

I was a believer in the trickle-down theory: If we gave the large corporations tax cuts, they would hire more workers and lower the cost of products, thereby generating more taxpayers and increasing the gross national product.

Instead, they shipped the jobs overseas or if that was not possible, they hired illegal immigrants, kept the prices the same or increased them, and just lined the pockets of the chief executives, chief financial officers and big-time stockholders.

I was even willing to pay a higher tax rate than someone making 10 to 100 times more than me, thinking they spend a heck of a lot more money than I do, so they will get taxed on what they spend.

I now realize the economy is in the toilet, due to no regulation and the greed of man.

Since trickle down did not work, let’s try trickle up, but not distribution of wealth, socialism or Marxism. Give the middle class the tax breaks; they will have more money to spend and we will need more products, which mean more jobs, which mean more taxpayers.

Let the large corporations keep their tax credits if they open factories in the USA and hire and insure good old American employees.

I guess I just became a Democrat.

Discussion: 23 comments so far…

By uddeboda

10/30/08 at 7:06 a.m.

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Businesses must try to do things by themselves, not relying on getting tax breaks.
You are so naive to believe that was the way to do things, then you should wake up. Big companies are in it for one thing, and one thing only, to make as much money for the shareholders, to pay the workers as little as possible, or resite overseas. The way things are going just now, the USA will continue to loose out, workers paid low wages, but wait a few more years, then it could be cheaper to resite the factories in the USA again, as wages in China are gradually creeping up. So all is not lost.
By Future2012

10/30/08 at 7:41 a.m.

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With consumers thinking the economy on a "wrong path", the incumbent party always loses.

When the Clinton recession hit it wiped out Al Gore.

Jim Carter, Bush One, and others lost on economy.

Obama who has never run anything was relaxed, aloof on the sideline, carefully distantly watched action in congress and then said me too, for anything Reid and Pelosi did.

Using his penumbrae political task force on economic conditions, Barack Obama is on the one hand able to claim consultation and on the other hand claim uber (superior) intellect on every subject.

a. Obama was able to say that a bottom up approach of giving annual bribes - $1000 checks to the poor will simulate the economy and produce jobs.

b. Obama was able to say that increasing business taxes will not impact cost to the consumers and job creation; and increasing trade barriers will not increase the cost of American goods we try to sell overseas.

c. Obama was able to say that increasing federal income tax revenue will not hurt the economy in a recession.

When Herbert Hoover and Jimmy Carter tried this this approach a recession turned into a depression.
By Tokoloshe

10/30/08 at 8:08 a.m.

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sheep
By KDR81

10/30/08 at 8:18 a.m.

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Like many Republicans (and Democrats) Bonnie you have only been paying attention to rhetoric and not action.

Bush has been a regulator.

The last deregulating President was Bill Clinton.

Bush increased spending, increased regulations, increased the size of government.

Btw, Trickle Down theory was originally (and still is) government spending programs...like investments in green energy, biotech, light rail, highways, college building construction, and bailouts for corporations!!!!!!!!!!!!!!!!!!!!!
By KDR81

10/30/08 at 8:21 a.m.

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Udeboda,

Corporations should be after only one thing, profits for their shareholders. That should be their only purpose. Corporations, afterall, are only the conglomeration of the wealth of their shareholders.

If profits mean cutting wages then that means they either do not produce a complex product or they are willing to suffer from lower productivity.

If a company closes a factory in America and opens it up in Asia what it has discovered is that Asians can do the same job for less money. The job SHOULD MOVE!

The money that company saved almost always goes into investing in new opportunities at home which means new jobs for Americans.

While SOME Americans end up worse off in their new job (lower pay) MOST Americans end up with a better job (higher pay).

ALL AMERICANS get to buy more products at a cheaper price!

Outsourcing is good for the country.

Stop watching Lou Dobbs, the guy is a freaking moron.
By jfnance32

10/30/08 at 9:13 a.m.

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I am eagering awaiting my Obama middle class tax cuts that is about $1.95 a day more than McCain's plan.

I am confident that will help the teenager down the street get that McDonald's that he dreams of everyday.

Obama is going to hurt businesses that are seeking capital to start or grow their businesses. He is going to raise taxes on capital job creation investments.
By redferret

10/30/08 at 9:46 a.m.

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Nance, how many people will have direct deposit from the federal government for a dollar ninety five a day?
Answer: 0
Your snide contempt of that money is revealed in the per day statistic you shoot out. At the END of the year when we get our tax refunds is when we would get this 1.95 which would turn into $712. If you really don't want that money, just give it to me. I'll be more than happy to spend it on something. Probably some cheese burgers but more likely a lot of other things.
Seriously, if you don't want it, I'll take that pittance off your hands.
By Bass

10/30/08 at 10:33 a.m.

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I was a D now I have become an R.

Stalin, Hitler, Mussolini, Peron and the "descamisados", Castro, Chaves the list is endless. They were all charismatic speakers that attempted to work from the bottom up, what they achieved were cultures that are/were poor, starving and uneducated.
Barack Obama says the constitution "didn't break free from the essential constraints that were placed by the founding fathers in the Constitution, that generally the Constitution is a charter of negative liberties." "Says what the states can't do to you, says what the Federal government can't do to you, but doesn't say what the Federal government or State government must do on your behalf." http://www.newsmax.com/insidecover/obama...
Negative liberties?? And all this time I thought the purpose of the Constitution was to limit government control on our lives.
By jfnance32

10/30/08 at 10:36 a.m.

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$1.95 a day in additional tax breaks.........cheeseburgers....cheeseburgers....cheeseburgers...

Thank you Hussein....the first socialist President of the USA.
By thebs

10/30/08 at 10:43 a.m.

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Nance, August 18: "It gives $1.64 more a day to the middle class over McCain's plan."

In a day, Nance's projection for the Obama tax cut rose 3%.

Nance, August 19: "Obama plan for middle class folks earning between $35k to $70k will give $1.69 daily tax break over McCain."

Then, Nance's projection for the Obama tax cut rose a whopping 19% from his original estimate!

Nance, August 29: "She wants to give an extra $1.95 a day more in tax breaks than McCain to the middle class so that the middle class can buy cheesburgers....oops wrong again that is Obama"

Finally, it arrived at an increase of 21% from his original projection... just 15 days later.

Nance, September 2: "He wants to give us an extra $1.98 a day (Cheeseburger plan) in tax breaks over McCain while at the same time heavily increase taxes on job creation capitial investments."

At this rate, even with Nance's projections settling back around $1.95, things are looking better and better for Obama with Nance's projections.

The funny thing is, Nance tried to debunk the source of his $1.95 statistic. Now he's adopted their projections. Poor guy can't make up his mind!

Someone get him a cheeseburger.
By jfnance32

10/30/08 at 11:01 a.m.

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Obama changes his tax and spending plans about every 2 seconds...no there is no telling where it will end up at.

My hero Hussein....the first socialist President of the USA....will give me $1.95 in extra tax breaks a day.

My savior....my messiah...he is saving me. I have no clue what I will do without the extra $1.95 a day.
By thebs

10/30/08 at 11:10 a.m.

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So you have no idea, you're just making it up as you go along? Yup, thought so.
By redferret

10/30/08 at 11:18 a.m.

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I love the dingleberries who want to compare Obama to totalitarian dictators and state that we're on the way there.
First it's a quantumm leap from liberalism, to socialism, to totalitarianism. We have quite a ways to go to get to those points.
Second, you cite many dictators, but how many of those were truly elected from that list? Stalin, Hitler, Mussolini, and Castro were all able to seize power. They were often INVITED in not elected. Also, last I checked Stalin was not a great speaker. He was the secretary for the party. He only rose to power by having control over party positions.
This sort of garbage is all that is left in the tank for McCain's campaign. Don't vote Barack, oh no, McCain's not as terrible as him.
Seriously what does McCain stand for? Why is he BETTER to be POTUS, not just why Barack is WORSE to be POTUS?
And nance, Bush gave me a whopping 2.19 per day in tax breaks. Whoo hoo, I can use flimflam accounting tricks too.
By jfnance32

10/30/08 at 11:58 a.m.

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D'Messiah....Hussein...is bringing salvation to the middle the class by giving us an additional $1.95 a day in middle class tax breaks.

God Bless our Messaih....Hussein!!!!!!!!!!!!!!!!!!!!
By redferret

10/30/08 at 12:09 p.m.

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So answer me straight nance, since you are so disdainful of the Obama tax break. Do you want your $712 at the end of the year, or do you want to give it to me, since you feel it is such a pittance? While it might just break down to 2 cheeseburgers a day, it also means 10-15 car refuels, 5-7 trips to the grocery store, a new computer, some medical procedure you might need, enough for half a rent/mortgage payment, car maintenance, a PS3 plus games and extra controllers, or a vacation for a family. Or many other things to many other people. And as noted earlier Bush only gave us about a $2.19 tax break per day.
Face it, this will inject money into the spending classes, the middle and working classes.
By jfnance32

10/30/08 at 12:38 p.m.

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Our Savior....Hussein....thank you sir for the $1.95 a day in additional tax breaks.

I wondering on how I was going to make through the next year.

Now with the extra $1.95 a day I can conquer the world!!!!!!!
By Sunvisitor

10/30/08 at 12:41 p.m.

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redferret, jfnace32 just falls in to the category described by the NYTimes "Sometimes, when a political campaign has run out of ideas and senses that the prize is slipping through its fingers, it rolls up a sleeve and plunges an arm, shoulder deep, right down to the bottom of the barrel." Name calling instead of any real facts. http://www.newyorker.com/talk/comment/20...

And after all he supports a woman who wants to have all the resources owned by all the people - like in Alaska. She even wants collectives. So is she a Communist?
By johnevegas

10/30/08 at 1:02 p.m.

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nance was probably the person who threw the playing board across the room once the inevitable loss became apparent.

Nance, Obama doesn't need to be a Messiah to be a better president than Bush. He just needs to be between somewhat horrible to terribly horrendous.
By johnevegas

10/30/08 at 1:10 p.m.

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"Obama changes his tax and spending plans about every 2 seconds"

I'm pretty sure this is a lie. Like most things nance is saying these days.

Too bad nance. No cred!
By jfnance32

10/30/08 at 2:22 p.m.

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August 2008: Obama's Economic Advisers Finally Acknowledge That Individuals Would See Higher Taxes At $200,000, Not $250,000.

June 2008: Obama Said He Would Raise Taxes On The Top 5 Percent Of Earners. The 5% would include people making less than $200,000.

February 2008: Obama Said He Would Raise Taxes On The Top 2 Percent Of Earners

October 2007: Obama Said He Would Raise Taxes On The Top 1 Percent Of Earners.

September 2007: Obama Proposed Applying The Payroll Tax To All Income Over $97,500.

Later, Obama So Obama Altered His Plan To Exempt Income Between $102,000 And $250,000 From The Payroll Tax

In April 2008, Obama wanted to raise capital gains taxes without regard to income.

In June 2008, Obama included a income test.

In March 2008, Obama wanted to raise the capital gains tax rate to 28%.

In August 2008, Obama changed it to 20%.

I guess if he submits any tax plan in Jan next year then it could fulfill any of his promises because they are moving about so much.
By johnevegas

10/30/08 at 2:34 p.m.

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Nance, you said every 2 seconds. These dates are clearly months apart.

And your facts are erroneous. Where is your backup data? Why should we take you at face value? Do you have a specific education in this area? Where are your polls?

Sorry, nance. It works both ways. You have no credibility here. Zero!
By Rverp1

10/30/08 at 2:42 p.m.

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Corporations do not pay taxes....YOUDO!. Corporate stock prices are tied to their earnings...(P/E Ratio) If the corporate tax is increased by 20% then then business has 2 choices:
1. Increase prices...Causing inflation...

2. Eat the price increase and have lower earnings. Lower earnings mean lower stock prices..

So if corporate taxes are raised YOU WILL PAY one way or the other....
By JustTheFactsJack

10/30/08 at 7:09 p.m.

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nance, you don't have a happy life do you?