U.S. Senate Race In Mass. Latest Battleground For "Trickle-Down" Tax Theory

Senator Liz "Goofy" Warren faces scrutiny back home on tax reform.

Massachusetts State Representative Geoff Diehl (R) told the Boston Herald that Senator Elizabeth Warren (D[uh]) has done "zero" for the Commonwealth. Diehl is contending for Warren's seat in the upcoming U.S. Senate election in that state. And he's right. The eternally miserable and shrill Warren indeed wanders about the country, showboating, writing books, and raising money for her fellow Democrats, leaving the Bay State just an afterthought, a fine-print asterisk on the stained page plotting the course of her own 2020 presidential ambitions.

A key and timely area in which Warren has been particularly counterproductive (as opposed to merely non-productive), is tax reform. Diehl, who several years ago saved Massachusetts from automatic gas tax increases and currently leads an effort to lower sales taxes, stated:

And now they’re trying to take up tax reform, cut the corporate tax rate, which is the highest in the industrialized world, cut the corporate tax rate down so that our country and Massachusetts has the chance to grow a lot faster. Elizabeth Warren basically said a few weeks ago that she is opposed to all tax reform that has been put forward by Congress and the president.

Warren remains a textbook liberal when it comes to taxes. The Left uses the principle of repetition, which psychologists note is an effective tool for changing minds. Progressives endlessly repeat that "trickle down" tax cuts don't help the economy. They laugh at the Laffer Curve, which is the economic model President Reagan relied upon. The Laffer Curve demonstrates that revenues increase when tax rates decrease, an effect attributable to the expansion of productive economic output stimulated by the tax cuts themselves.

The other major liberal bromide on tax policy involves bleating about how to "pay for" tax cuts. Because cuts in spending, you see, are never on the table. This "tax cuts must be paid for" logic reveals the progressive attitude toward the property of the citizenry. Liberals take it as a priori that the government has first dibs on the fruits of our labor. Warren clearly believes that her constituents should consider themselves lucky they get to keep anything at all. "You didn't build that," Warren once famously scolded the makers, innovators, and creators.

Fortunately, Diehl indicated that if he reaches the U.S. Senate, he will work with President Trump to move forward with a pro-growth economic agenda. And they're eagerly waiting for his help in DC. National Economic Council Director Gary Cohn, in an interview with CNBC's John Harwood, stated:

When you take a corporate tax rate at 35 percent and move it to 20 percent, and you see what's happened over the last two decades to businesses migrating out of the United States, migrating profits out of the United States, migrating domicile out of the United States, and hiring workers out of the United States, it's hard for me to not imagine that they're not going to bring businesses back to the United States. We create wage inflation, which means the workers get paid more; the workers have more disposable income, the workers spend more. And we see the whole trickle-down through the economy, and that's good for the economy.

Cohn is correct--"trickle down" need not be a slur. However, humans in these times aren't the sturdy folk that their ancestors used to be when it comes to facing reality. We can see an example of this in the spread of euphemisms throughout our everyday language. Long ago, dead folks were buried in the "boneyard." Later, this place became a "graveyard." Then it morphed into a "cemetery." Now it's a "memorial park." The trend flows toward the abstract, clinical, and soft.

So, in step with the current zeitgeist, let's call the beneficial effect of tax cuts a "prosperity cascade." After all, the rewards will be much more than just a "trickle."