Low taxes on high earners - A reason to let wealth concentrate at the top
When you start taxing corporations and their CEOs/Board members at lower rates, this is incentive to keep money concentrated at the top. In other words, “trickle down” economics work exactly opposite to how they are presented.
It would seem that if you were taxing these high earners at a higher rate, there would be more incentive to pass on profits/earnings to employees to avoid paying larger amounts in taxes as this higher pay for employees would mean higher operating cost and less profit to be taxed.
At the same time more money is going to employees who then spend that money on living expenses and perhaps the occasional luxury item, putting money back into the economy.
The lower tax scenario is exactly what has happened. Has corporate profits and high earners are taxed less, money continues to concentrate at the top, workers are paid less and receive less in benefits and the divide between the rich and the poor gets larger. Hence, the current financial situation we have in the US.
