Democrats' latest tax proposal

[Westward1]

Sorry if this is the wrong forum.

 

I have a question about the Democrats’ latest tax proposal:

 

http://www.washingtonpost.com/business/economy/democrats-in-a-stark-shift-in-messaging-to-make-big-tax-break-pitch-for-middle-class/2015/01/11/d4438468-9999-11e4-a7ee-526210d665b4_story.html

 

The proposal seems to reflect the middle-out (rather than top-down) approach to economic growth as articulated by Robert Reich and others.

 

The proposal raises taxes on top earners and corporations and transfers that money into the hands of middle-class consumers.  Increased consumer spending will lead to job creation.

 

The difficulty is predicting how the top earners and corporations will react.  It seems to me they can respond to the increased demand by: (a) creating jobs , ( raising prices, or © shrinking in size due to the new tax burden.

 

If ( or ©, the middle-out approach benefits no one.

 

Any insights?