So why is there no tax revenue coming in? Because the money isn't going to WAGES, it's being siphoned off by the investor class.(See the chart)
When workers are paid wages, 100% of that money goes back into the economy. They pay both income taxes and payroll taxes (which account for 36% of U.S. tax revenue), and they spend the rest on goods and services right here in America.
But when the money earned for corporations by their workers is instead diverted to corporate profits and the investor class, tax revenues plummet (NOT grow, as Paul Ryan so history-blindedly predicts). Despite their vastly higher income levels, corporations' share of the tax burden is only 12% due to their vast amounts of tax writeoffs, credits and creative accounting. Both investors and corporations are more likely to move their earnings overseas (into either tax shelters or foreign investments). And foreign entities also hold a big share of the stock market, diverting corporate profits abroad before the American tax system gets a penny.The investor class also pays an historically low tax rate of 15% on their earnings, as most are capital gains. And neither corporations nor investors pay payroll taxes, a factor which alone knocks a huge hole in the tax rolls. Even when investors do pay earned income tax rates on a portion of their income, those top tax rates are at their lowest since the 1930's. U.S. tax revenues as a percentage of GDP are far lower than many countries whose economies are recovering faster than ours.
The GOP solution? Cut off all the remaining government services that benefit the working class. Cut the top tax rate even lower. Drive wages down even further.
$4 trillion in cuts? This is the same guy that wouldn't agree to cut $60 billion for 2011 and I'm to believe he's serious about cutting anything?
Protect the middle class? I'm sorry Mr. President....the middle class gets almost no benefit from all the social programs you advocate. The middle class gets no benefit from your foreign aid. The middle class gets no benefit from excessive government pensions, your subsidies to the energy companies, your healthcare reform act, etc, etc.
This speech was just another useless campaign speech talking about all he's going to do with no direction and no formulated plan or specifics.
P.S. Really MSNBC??? You're going to quote a spokesman from Harry Reid? You couldn't find anyone more out of touch with the American voter except maybe Pelosi or Palin.