The GOP's justification for passing tax cuts for the rich is the idea that rich people will invest and spend the money which will then filter down to the little people, but that never happens, does it?
Case in point, CNBC reports that rich Americans are spending far less than average Americans right now even though they received a windfall from the Republican party's tax cuts for corporations and wealthy shareholders.
Luxury real estate is having its worst year since the financial crisis, with pricey markets like Manhattan seeing six straight quarters of sales declines. According to Redfin, sales of homes priced at $1.5 million or more fell 5% in the U.S. in the second quarter. Unsold mansions and penthouses are piling up across the country, especially in ritzy resort towns, with a nearly three-year supply of luxury listings in Aspen, Colorado, and the Hamptons in New York.
Retailers to the 1% are faring the worst, with famed Barney’s filing for bankruptcy and Nordstrom posting three consecutive quarterly declines in revenue. Meanwhile, Wal-Mart and Target, which cater to the everyday consumer, are reporting stronger-than-expected traffic and growth. [...]
The savings of the rich has also exploded, more than doubling over the past two years, suggesting that the wealthy are hoarding cash. The middle earners, or those in the 40% to 89.9% of the income distribution, have largely picked up the spending slack from the rich.
Economists who spoke to CNBC say there's possibility that this could result in a "trickle-down recession," giving whole new meaning to trickle-down economics.
Retailers like Wal-Mart and Target are still doing well because average people -- people like us -- have no choice to but spend a significant amount of our income on basic necessities like food and clothing. The rich need food and clothing, too, but spending on either represents a small percentage of their disposable income which they're apparently hoarding.
It's natural for anyone including rich people to cut their spending with a madman in the White House, but that's all the more reason not to give tax cuts to people who don't need it; people who were already the richest people in the entire world before they received another windfall.
The Trump White House and Senate Republicans have reportedly been working on proposals to cut taxes for the rich. Again.