If we think that the current wealth share distribution represents a problem, the tax reform makes the problem worse because it shifts wealth further toward the existing owners.
It's still not clear from the graph how 2017 tax reform affected wealth distribution.
It's even less clear what was the goal of said tax reform (that it failed to achieve). Maybe it was economic growth or happiness of the Supreme Leader rather than inequality reduction. Those things may not be compatible.
The tax reform reduces corporate taxes, which directly benefits corporate shareholders. The bottom 90% control a tiny slice of corporate wealth and benefit a lot less than the shareholders.
The declared purpose of the reform was increase in investment. Instead, we see buybacks, profit taking, etc.
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Missing some steps
Date: 2019-02-01 02:47 am (UTC)Re: Missing some steps
Date: 2019-02-01 03:15 am (UTC)Yes, but
Date: 2019-02-01 03:31 am (UTC)It's even less clear what was the goal of said tax reform (that it failed to achieve). Maybe it was economic growth or happiness of the Supreme Leader rather than inequality reduction. Those things may not be compatible.
Re: Yes, but
Date: 2019-02-01 03:37 am (UTC)The declared purpose of the reform was increase in investment. Instead, we see buybacks, profit taking, etc.