June 6, 2024

Capital & Main: The Return of Trickle-Down Economics

media mention

The return of trickle-down economics — the much-criticized theory that tax cuts for corporations and the wealthy eventually result in job growth and higher wages for the middle class and working class — has inspired a fierce debate in the Kansas Legislature that has gone on for months. A bill that included a flat 5.25% personal income tax, an 8% reduction from the current rate for top earners, was approved by Republicans in both chambers, though critics say it would disproportionately benefit the wealthy in the state. The top 20% of earners in Kansas — those with average annual incomes above $315,000 — would get nearly 40% of the benefits, with Koch himself receiving an estimated $485,000 in annual tax breaks under the proposal, according to the Institute on Taxation and Economic Policy, a nonpartisan research group that favors a progressive tax system. It would also cost the state almost $650 million every year once fully implemented, per ITEP.

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