Trickle-down economics is a cruel joke.

[unblock]

27. Tax cuts for businesses are very inefficient boosts for the economy for a simple reason

Businesses base their decisions on whether or not they are profitable. Changes in tax rates affect how much profit they keep, but it does not generally change whether or not a business decision is profitable.

Losing deals still don't get done, and winning deals were going to get done anyway. It just makes them happier to do so, and this translates into political contributions for republicans, which amount to kickbacks. In other words, it's not so much a boon to the economy as it is a boon to a system of political corruption.

Now I'm simplifying a bit, because some marginally losing decisions may become marginally profitable on a risk-adjusted basis and the risk-distorting effects of bankruptcy laws could change some decisions. So it's not a complete waste in terms of stimulating the economy, just very inefficient.

Giving money to poor people working brilliantly because they will spend the extra money in the economy, which by the way, businesses and rich people benefit from. Trickle *up* actually works.

Giving money to businesses doesn't incentivize anything really, they just have more profits to dividend out or do stock buybacks with. So it just gives more money to rich people who often invest or spend overseas. Or on politicians.