In the third quarter, corporate earnings were $1.75 trillion, up 18.6% from a year ago, according to last week's gross domestic product report. That took after-tax profits to their greatest percentage of GDP in history.
But the record profits come at the same time that workers' wages have fallen to their lowest-ever share of GDP.
So we have to record breaking pieces of information here; profits are at record highs and wages are at record lows.
This comes at a very critical time in our nation. With the fiscal cliff less than a month away, many on the right are content with middle class taxes going up, just to save the corporations some tax money. The thinking is the same, failed logic that GOP has been pushing for years; "if corporations have more money, they will hire more." It goes against the very basis of supply and demand economics and is a proven failure just by this data. The corporations do have the money, but they aren't hiring and they aren't paying.
ROMNEY: What’s the effective rate I’ve been paying? It’s probably closer to the 15 percent rate than anything, because my last ten years, I’ve, my income comes overwhelmingly from investments made in the past, rather than ordinary income, rather than earned annual income.
To put this in perspective most middle class Americans pay 25-28%. So for every dollar Mitt makes he pays about 15 cents. For every dollar middle America makes, they pay 25-28 cents. Doesn't seem fair at all, does it?
31. What do you think is the bigger problem in this country – (unfairness in the economic system that favors the wealthy), or (over-regulation of the free market that interferes with growth and prosperity)?
Most Americans view this system as unfair, yet the GOP goes out there and continues to push to keep it and even make it more unfair. Look at the Paul Ryan budget the House GOP approved last year. That actually increased taxes on the middle class by closing loopholes they have, yet left the loopholes in for the top 2% and even exposed new ones. It was nothing more than a middle class tax hike.