Donald Trump’s tax plans a ‘massive giveaway’ to richest 1%

Not during an expansion which is what we are going through right now. Recessions happen every few years because you can't just have upturns. When recessions happen, the government stimulates aggregate demand to get people to consume. The idea is that if people consume more you can get the economy to improve (meaning unemployment to go down). That is done through fiscal policy (cutting taxes or increasing govt spending) or through monetary policy (the fed, janet yellen) by lowering interest rates. If trump does this before a recession you cant stimulate the economy when it is needed.

We currently have 5percent unemployment. The economy is actually doing great. We do have an insane gini index (what measures income inequality). So for the greatness of the economy to be widely felt you would probably need to spread the wealth. Norway does it through tax redistribution (they are also oil rich, but the US is natural gas rich so we could do it too).

Years ago, there was a theoretical result that showed that if the economy is at a certain point, the govt can collect higher revenues By lowering taxes. It is called being on a certain part of the laffer curve. This lead reagan to try it and it didn't work out (meaning that higher revenue wasn't obtained). While theoretically possible, that method does not work empirically.

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