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[deleted] t1_ivsrq9m wrote

Reply to comment by somebodyelse22 in TIL In 1983, Air Force One (with Reagan aboard) landed six minutes before a microburst slammed into the ground at Andrews Air Force Base, causing wind speeds to hit 149 mph. At the time, that was the fastest wind speed ever measured by an anemometer. by theotherbogart

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AkshuallyGuy t1_ivt80g9 wrote

Trickle-down was tried in the US in the 1890s, but it had a better name: horse-and-sparrow economics. If you feed a horse enough grain, the sparrows will have more shit to eat.

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PuckSR t1_ivth2g5 wrote

The ironic thing about the debate is that there is a legitimate argument for low taxes that was proven by Andrew Mellon. He argued that high taxes encouraged tax fraud/abuse, and that lowering tax rates could increase overall tax revenue. The theory being that at lower rates, rich people have less incentive to engage in exotic accounting practices. He was proven correct when the US lowered taxes on the very rich and saw greater total tax receipts.

Unfortunately, neither the Republicans or Democrats will embrace this idea because it involves lowering tax rates on the rich AND the govt attempting to collect more taxes.

This theory is one reason that both Democrats and Republicans supported lowering the corporate tax rate from 30%. Trump didn't really understand or articulate the idea, but it was the underlying argument.

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