“Lower taxes for the rich is the theory behind trickle-down. Across the board, for poor and middle-class -- yes, I agree that is the way to stimulate the economy.”
The two tax cuts most talked about were those by former President Reagan and the current President Bush.
The income tax rates were cut for all taxpayers in both cases.
There is no denying that.
As a matter of fact, if one wishes to judge the results of the tax cuts by the percentage of taxes paid by income percentile, one will find the richest quintile pay a higher percentage now than under former President Clinton and the bottom three quintiles pay less. (source: http://www.irs.gov/pub/irs-soi/05in05tr.xls
The top 25% of wage earners paid 86% of income taxes to the federal government in 2005. It was 84% in 2000.
The top 50% paid 97% in 2005 and about 94% in 2000.
The bottom 50% paid 3% in 2005 and 4.6% in 2000 and the bottom 25-40% paid nothing in 2005 as well as in 2000 and even got money given to them in the form of the Earned Income Tax Credit which is really nothing more than a differently named welfare program.
Trick question: How does one give an income tax rate cut to one who pays no income taxes?