Several news stories have reported that income tax refunds have decreased for several million taxpayers this year. It seems that the Republican tax cuts aren’t trickling down as promised by President Trump, Reps. Paul Ryan, Chris Collins, and their colleagues.
Instead of trickle-down, why don’t we try “bubble up” economics instead? Raise the federal minimum wage to a reasonable rate, perhaps $12- to $15-per-hour. This will give low-wage earners more disposable income, enabling them to spend more on consumer goods and services, and even to save a little for larger purchases and emergencies. They will also pay more in income taxes.
The benefits will bubble up as retailers’ sales increase, enabling manufacturers to produce more goods, increasing hiring throughout the nation.
The increase in revenue will cover the increased cost of wages.
In other words, the increased wages will pay for themselves, just as tax cuts do, supposedly.
It has been claimed that income tax reductions stimulate the economy, and that “a rising tide lifts all boats.”
Instead of waiting for the rising tide to trickle down, why not let the rising tide flow from the bottom?