Tax cuts for consumers are basically a wage increase. Tax cuts for producers are basically an investment increase. While it is important for consumers to have strong wages, more positive over the long term tends to be done when investment is strengthened. Increasing demand doesn't increase prosperity; increasing supply does. Increasing wages does have a positive effect on supply, but that comes as a response to its positive effect on demand. Increasing supply can be hit more directly and productively with focused tax cuts, which ultimately results in an even greater increase in wages than the alternate scenario.

In addition, journalists are typically incorrect when they assess taxes. They tend to conflate legal incidence of tax and economic incidence of tax. I'm out of my wheelhouse on by this point so I can't go into detail. There are a lot of taxes that are said to benefit the rich disproportionately that actually don't.


The Democrat tax cut strategy (in the rare occasion they want one) is not that economically sound. They erroneously think that more consumption equates to more prosperity. The Republicans tend to use a handful of legitimate economic ideas behind their tax cut rationales. One is to increase supply by reducing marginal rates. When targeted smartly, this can work well. Another is to increase savings and investment. Savings is future consumption; investment is basically future production. Tax cuts targeting savings result in more production and consumption than one targeted at current consumption.

What specific policies that Trump has proposed do you not like?