US economic policy analysis critiques trickle-down tax cuts

An analysis of American economic policy over the last 46 years suggests that trickle-down economics has failed to deliver promised prosperity to working and middle-class families. Despite repeated corporate tax cuts and expanded loopholes for high-income households since the early 1980s, data indicates that wages have stagnated, healthcare costs have risen, and the wealth gap has widened.

The trend of deficit-financed tax cuts for corporations and the wealthy began with Ronald Reagan in 1981. This model was later continued by George W. Bush through tax cuts in 2001 and 2003, and by Donald Trump in 2017, which reduced the top federal corporate income tax rate from 35% to 21%. Critics argue that instead of prosperity flowing outward to workers, wealth has pooled upward, leaving workers with a smaller share of rising productivity.