It is not exactly a contradiction to note that disparity would be less, and yet that there will be disparity. But leave that aside: what about the point of personal, as opposed to quintile, income growth? Since '81, my income has grown by about 900%. Measuring the quintiles is totally misleading.
Since most disposable income is saved by the wealthy through investment, it is, in fact, economically productive. Additionally, the purpose of cuts in the marginal rates was to increase the incentive to earn, and decrease the incentive to shelter, thus leading to more productive use of resources. Anyway, no one said that the trickle down would decrease disparities, but that it would create more jobs and a tighter job market.
My prediction is that a tax cut will be used by many to reduce the level of consumer debt, and therefore the threat of bankruptcy. This would be at least as important as retiring government debt, and would have the added advantage of strengthening family finances directly.
I am still not quite sure what you would like to see happen, since proposed cuts will have a broad reach..... |
