Been known pretty much since the practice was adopted. It's one of those folk understandings of economics that sounds and feels true, but misses the fact that it's actually trickle-to-sweatshops-in-Cambodia-and-divert-the-rest-to-shareholders-and-shady-Panamanian-bank-accounts economics.orange808 wrote:Seems to finally be a consensus of sorts that zero corporate tax is unsustainable and there's zero trickle down. Someone pee on Maggie or Ronnie's grave for me. Fuckers.
The structure of capitalism is literally the practice of extracting additional profit from other people's labour. On a functional level it is fundamentally trickle-up, unless there are major government social interventions (and even then). Unfortunately one of the other inevitable features of capitalism is that the people the money trickles up to and government unavoidably become the same people pretty fast.