Trickle. Down. It’s how water works, in order to keep plants alive. Its how I’m able to have water every day. It’s a ton easier to work with water, than with electric, because electric can go anywhere, at any time. Water has one way to go. Down.
Once rain falls onto the ground, the runoff begins, and it helps everything that it passes through, or lands on. Pretty simple concept.
With that in mind, it’s time to learn about trickle-down economics, which of course, doesn’t work, if you listen to certain people.
I make 1 million dollars a year. I’m doing pretty well. I’m comfortable with where I am. But, take into account the taxes I have to pay. Living in New York, I have to pay $68500 to the state, plus another $432,368 in federal taxes. Over $500,000 in taxes! (New York is 6.85%, and Federal taxes $119,996 plus 39.6%. $500,861…in one year)
Now, it doesn’t matter what the government does with your money. You don’t need to know. Or, read the hundreds of thousands of pages of legislation to see where your money goes. Good luck with that.
So, now I’m left with $499,139. Still pretty great, considering I’m above what most of this country, as far as income goes.
With that much money, I’m now in a position to have things done for me. Addition to the house, cleaning service, pool maintenance, or new blacktop for the driveway.
I’ve also been looking into a boat lately, and my wife needs a new car. She’s had her eye on the new Chevy Silverado. Can’t scrimp there. And don’t forget the boy, who wants a new gun, and bow and arrow.
I don’t have a problem with spending that money. It keeps everyone comfortable. We get what we want or need. And we do it comfortably. What the biggest advantage to all this spending is all the people I’m going to benefit.
The carpenter that I’ve hired can hire a couple guys to put my addition on. I can get the cleaning service to come in once a week, instead of once a month, keeping money going to the employees. The pool company down the street can keep their employees on longer, because I’m one more customer that they have to close a pool on. They get paid too.
My wife gets her new truck, getting her salesman 1 sale closer to his bonus for the month, and another business has income coming in. The local sporting goods store now has two new sales, plus service customers until it’s time for a replacement gun or bow.
Now, with all the money that I’ve just spent, I’ve paid for at least 15 employees, kept the lights on in multiple businesses, and let them keep passing the money around. The trickle down has begun. And everyone that has been paid from my business, gets to do things like I have just done, and keep the money moving.
If the government were to allow me to keep more of the money I make, less than 50%, I would be able to do even more with my money. Spreading it around to more businesses and companies.
Poor people don’t hire people. I know. I’ve done manual labor most of my life. I was given opportunities by a lot of people who hired me, to pull my way up the economic ladder. People with money, hired me to do work for them, when I didn’t have much.
Lower taxes means more money in your pocket. More money in your pocket, means you’re going to spend more. When you spend more, other people make more money. When those people make more money, they can spend more. And on and on it goes.
Trickle-down economics works. It worked in the mid-80s, and it will work today. It just needs to be implemented again.