Trickle-down theory has failed us

Since the administration of Ronald Reagan in the 1980s, Republicans have extolled the advantages of lowering the top marginal tax rate, suggesting taxing the wealthy less will help out the lower and middle class. Even though the top rate under Bush 41 was 28 percent, we experienced the recession of 1992. Bill Clinton raised the top rate to 39.6 percent. We then experienced the longest economic expansion in our history.

Bush 43 was then elected and through the tax cuts of 2001 and 2003 lowered the top rate to 35 percent. Again Republicans argued that because of these lower rates small businesses would do more hiring, thereby helping the economy. This argument obviously did not come to fruition because neither the stock market nor the job market, or the economy in general, went anywhere for his entire administration. In fact the stock market performance was the very worst of any full two-term president in history.

The recent tax debate again showed a major difference between Democrats and Republicans. The Democrats argued for helping the middle class through tax cuts for 98 percent of Americans, and the Republicans' entire agenda revolved around forgetting recent history and extending tax cuts on the upper 2 percent. I certainly know a $250,000 yearly income hardly makes one wealthy; however, the real target of raising the top rate was the tiny fraction of 1 percent of people making tens of millions (or even over $1 billion) per year.

I know Republicans will argue the rich are already taxed too much, but how is that trickle-down theory working when Warren Buffett says “lower rates have not led to an economy which lifts all boats but one which lifts all yachts”?

Phil Williams

Palatine