1. TRICKLE DOWN EFFECT

3. 202
4
VARUN ACADEMY
10,000
Employees
1000cr
Net Profit
15,000cr
Annual revenue
25%
Corporate tax
Billion Dollar edutech company
250cr
Taxes
750cr
Reinvest

4. IN THE YEAR 2026

5. 2026
800cr
Net Profit
25%
Corporate Tax
600cr
Reinvest
Profit after tax
Net profit are expected to
fall by 20% from 1000cr to
800cr

6. Lay off 5000 employees
Restaurants
Vehicle
Spend less / cut down
their expenses
Electronics
Fire Driver
2026
Movies

7. This is where TRICKLE DOWN THEORY comes into use
Government will reduced the corporate tax for VARUN ACADEMY to 10%

8. 10% Corporate Tax
which is 80cr
Profit of
800cr
Reinvest the 720cr in
the next year
2024 – Varun academy made 750cr in
profits
2026 – Varun academy made 720cr in
profits
2026

9. Will not Lay off 5000
employees
Will not Spend less/ cut
down their expenses on
Restaurants
Vehicle
Electronics
Will not Fire Driver
Movies
Now, Government will earn the same amount in taxes,
without an ECONOMIC SLOW DOWN

10. This how, by cutting taxes for corporates and business owners, the
wealth Trickles down to middle class and lower class people
This is the TRICKLE DOWN THEORY

11. BUT, BUT ,BUT
In the real life situation

12. Will still Lay off
5,000 employees
Government reduces
taxes from 25% to 10%
Save 300cr in
expenses by laying
off employees
800cr+300cr =
1100cr
PROFIT
800cr
Profits

13. In the Next year - 2027
10% Increase in Profits - 1100cr
In Bad market conditions
VARUN ACADEMY
Shareholders and Investors
Increase in company’s Stock price

14. Will still Lay off 5000
employees
Will cut down their
expenses on
Restaurants
Vehicle
Electronics
Fire Driver
Movies

16. IN THE GAME OF ECONOMICS ,
ALL OF US ARE PLAYERS AND
NONE ARE SPECTATORS
THANK YOU…!!
Y. Rohith Reddy