Friday, July 12: Philadelphia, PA 4:15pm - At Netroots Nation
Location: PA Convention Center, 1101 Arch Street, Philadelphia, PA
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How the GOP Tax Cut Will Also Shrink Your Paycheck
The morbidly rich billionaires who own the Republican Party know that when working/middle-class people get a tax cut, it means that over time working-class wages will go down - which is why they're more than happy to give us all a temporary tax cut.
This is what wealthy people know that most Americans don't: Tax cuts for truly wealthy people increase their income and wealth; tax cuts for working people actually decrease their income and wealth over time.
This is because of what economist David Ricardo referred to as the "market for labor," as well as the different ways working class versus rich people use their "extra money." Here's how it works:
If you're part of the top .1% - say you're earning a million dollars a year - and you get a tax cut, you'll keep more of the money you're earning. The main reason is because people in those income categories 1) generally have a high degree of control over their own income; and 2) they more often than not already are working under a massive tax cut - at least a lower tax rate - called the capital gains tax or carried interest.
But even setting aside Part II of that, truly super-high income earners, like the banksters on Wall Street or CEOs of large corporations, have a significant measure of control - if not total control - over their own income.
For working people, it's an entirely different story.
Read more here.