As I am currently taking Econ, I have learned a few things about his well-meaning, though not well thought-out plan. The Idea is that if you cut the taxes, that puts money back in the hands of the consumer, who spends the money, causing it to go back into the economy, as the businesses then get richer, Then the tax can be increased on them, allowing more money to fall back into the hands of the government.
The only problem with this is the amount of time it takes to happen. A really long time, while the debt still accumulates, eventually causing bankruptcy unless the market rebounds.
A short-term tax hike would, in my own opinion, be much more desirable because it would quickly put money directly in the hands of the government, who could then pay off the debt quicker, rather than letting it accumulate.
Close, very close, but not quite how trickle down economics works. Instead of later raising taxes on buisinesses once they "get richer", your revenue increases with the increase in tax base. Example- let's say your company's net profits are $100,000, and you're taxed at 35%- the government "makes" $35,000 off of you. Now let's say that there is a tax cut, now you're only being taxed at 25%, you now only pay $25,000 to the government, and take the $10 grand, and reinvest it back into your company. The next year, your profits are up- now your year-end profit is $150,000, but at 25%, you now pay $37,000 to the government. They lowered the rate, but take in more money. Of course, there's more- if you've hired more people in that year, because of your increased profits, that creates more jobs, and more people paying taxes, and more revenue for the government.
The problem with a short-term tax hike, especially in this economy, is that a tax increase takes money OUT of the economy, that will slow growth in the private sector both by limiting consumer spending (people have less money to spend) and slowing job growth (less consumer spending AND
higher overhead with higher taxes) Those two effects would more than likely cancel out any increase in revenue from the higher tax rates, as you'd be taxing less money.