Originally Posted by Loneiguana
On to ... the question you asked me in another post. What time frame? Let's go with from 2000 to present. you can start at 1990 or 80 if you want as well.
Show me where, during this time frame, lowering the tax code of top earnings resulted in a trickle down effect in --1)a growth in middle class, 2) growth in median wages, 3)growth in employment.
The graph in post 77 seems to indicate that the poverty level goes down after the Reagan tax cuts, up after the Bush I tax increase, down after the Clinton tax increase, and then up after the Bush II tax decrease. What that tells me is that tax cuts and increases aren't the driving factor for poverty levels (and by implication, the size of the middle class).
But for the purpose of answering your original question, during the period between 1982 and 1989, in the aftermath of the Reagan tax cuts, income inequality was growing but there was a pretty steady decline in the poverty rate (and by implication, an increase in the size of the middle class).
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