Trickle down theory
This is an old revision of this page, as edited by HenryS (talk | contribs) at 02:37, April 5, 2007. It may differ significantly from current revision.
The theory that cutting taxes for the corporations and wealthy individuals will stimulate economic growth by increasing the amount of capital available to invest. Some argue that cutting taxes to the poor has a greater effect on the economy since almost all the money that they earn goes directly to buying products and services. President Ronald Reagan was a proponent of this model.