Contents

• Introduction 2
• Trickle-Down Economics 2
• Conclusion 5
• References 7

Description

Tax policies and tax cuts directly influence the economic growth of the nation. One of the taxation theories, which discusses the impact of tax cuts on the economic growth of nation is trickle-down economics. Trickle-down economics refers to theory, which states that benefits for wealthy leads to benefits to everyone else (Greenwood & Holt, 2014). The benefits include tax cuts on businesses, capital gains and dividends and less tax on high-income earners (Lehmans, 2015). This theory assumes that investors and big business owners are real drivers of growth. The theory assumes that big businesses use any extra cash that they earn from their business and tax cuts to expand their business, which will influence investors to buy more stocks. This research paper aims at addressing the question ‘Does trickle-down economics really work?’. The research is explorative and uses secondary sources, which include journal articles, books and online articles analyzes whether trickledown economics benefits the economy of the nation.