There is no trickle down effect and morethan likely will not be one. While I support any tax cut to save myself some cash the Bush tax cut is not what it was implied to be. This tax cut was suppose to be the largest in history according to Bush, but in fact according to the National Taxpayers Union study, these tax cuts pale in comparison to the tax cuts from Reagan and kennedy in which there was an actual trickle down effect. The rw numbers are higher for the Bush cuts, but both Reagan and Kennedy had a larger portion of the cuts pointed toward the largest class in America the middle class, whereas Bush's cuts are more top heavy. By slanting the tax cuts more to middle america they were able to create spending which in turn led to a better economy, whereas Bush's cuts were based on an assumption that by giving the upper tier more cuts they would in turn expand their business operations and create more jobs, as of yet there has been minimal results from this. Another factor affecting the ability of a trickle down effect is the looming change in the ALternative Minimum tax, as Congress failed to index the tax, thus it will have to be changed within the next few years or the results will be a huge loss of any tax breaks for middle america, if this is not changed Bush's tax cuts will actually result in cuts of only 1.7% of GDP. In comparison Reagans and Kennedys tax cuts utilized indexing of the Alternative Minimum Tax, and Reagans cuts resulted in 5.6 og GDP and Kennedy 3.3% of GDP.
