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Supply Side Economics Essay

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There have been many debates about the new tax plans approved by the senate. Much has been written and published about the details of the new tax plans and whether people approve the economics behind it. The two major political parties have very split opinions on the increase taxes for certain groups of Americans. A recently published article called “Six More Things to Know About the Senate Tax Plan” discusses the new tax plans and strikes upon subjects discussed in class such as supply side economics, the income redistribution, and wealth inequality.
According to an article discussing the tax plans being discussed in Congress, “Six More Things to Know About the Senate Tax Plan” the Senate intends to increase both state and federal taxes for the lower and middle classes. This plan goes against the beliefs of supply side economics. Supply side economics is a theory that the economy will spark growth with less taxes and minimal government regulation. Although the senate contradicts this theory, the author of the article points out that if these taxes are fulfilled correctly most of the citizens will benefit …show more content…

Another important aspect about the tax plan is the tax cuts for corporations. The article explains why the tax cuts will benefit the wealthy minority. The richest citizens own the most stocks for corporations so theoretically they will receive most of the tax cuts. This extra cash is then intended to flow back into their workers in the form of increase wages. This is an attempt to fix the wealth inequality. The top 10% of America owns up to two thirds of the wealth in America. The article goes on to explain why this idea may be harder to put in effect due to the tax hikes. The middle fifth of America will experience a tax cut by an average of $730 in 2019, but will soon increase in 2027 (“Six More Things to Know,”

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