Roll back the Reagan tax cuts, like they just did in France

With the Socialists now in control of France – the wealthy are again - after a long pause of tax cuts for the rich under Sarkozy - being asked to sacrifice their fair share. President Francois Hollande introduced a new budget on Wednesday – restoring pre-Sarkozy tax rates on the rich. That includes a surtax on anyone making more than $1.6 million, plus a tax on the nation’s biggest banks and oil corporations, which is expected to trim 1.1 billion euros out of France’s budget deficit.

Under Hollande’s budget, the new tax rate on any income over $1 million dollars will go back to 75%. That might sound steep here in America where the top tax rate is around 35%, but it’s actually where the top tax rate was – and for two decades even higher – from after the 1930s until Ronald Reagan, including during the non-socialist presidencies of Richard Nixon, John F. Kennedy, Jerry Ford, and Dwight Eisenhower.

That was a time when our nation could afford a strong social safety net to support a growing middle class, plus new infrastructure projects around the nation, and a robust GI Bill to send millions of Americans to college for free. Time to roll back the Reagan tax cuts, like they just did in France.


ronsonntag's picture
ronsonntag 11 years 50 weeks ago

The French economy will begin to turn-around, jobless rate will drop. Some wealthy will leave the country, but the vast majority will adhere to their pride in France and will recognize their fair share. Executive salaries will stabilize or fall in favor of retaining profits and investing in the corporation's future rather than giving away billions in bonuses and excessive compensation.

leighmf's picture
leighmf 11 years 50 weeks ago

What difference is it what the tax rate is if IRS is too overwhelmed to find its own records? They admit to this. And the DOJ is too overwhelmed to prosecute the biggest offenders, and only has time to make successful cases against employees of the mob.

This has been the case since 1930- red herrings all over the place to clog up the regulatory and enforcement agencies so the tyrant class can stay steps ahead of the game with new legislation, offshore loopholes, and secret vaults.

The tyrant class has to be put down absolutely. Why is it abominable to have a social conscience? It is not. Any civilized, worthwhile person works for the common good and health of the world. I don't want to be an Ugly American.

So pass me another caviar-filled sourdough blinis to sneak into the bottom of Speaker Pelosi's $4,000 shoe.

yolanda verdin's picture
yolanda verdin 11 years 50 weeks ago

I am all for this country getting back to how things were before the rich started behaving like vulchers as intensley as they have been lately.

Thanks again Thom and staff, for all you do for all us!

JOHNCHRISTIAN 11 years 50 weeks ago

Thanks Thom, you,re hitting the nail on the head constantly.

pattreid's picture
pattreid 11 years 50 weeks ago

Every French citizen I know voted for this man. I stand with them. We need a socialist of our own to elect! I know there are socialists running every election, but they get zero press, no recognition, and rarely get on ballots. We have so many issues facing us... fair elections sans corporate influence is just one of them. It's hard to know where to start!

Thanks for all you do, Thom!

eyeballfarmer 11 years 50 weeks ago

Why increase revenue when we have no control over how the new income will be spent. Perhaps we could double or quadruple the F-35 fighter jet order, or perhaps purchase a few new carriers and submarines per Romney's economic stimulus ideas. Certainly more giveaways to the oil barrons and industry titans can be had, and we MUST have at least a few trillions of dollars on hand for the coming round of financial industry bailouts.

If the two Di(a)mon(d)'s profuse apologies are any indication, and gauging by numerous other financial news stories, then you know, and they must know, that we are on the brink of an event bigger than the 2007 financial meltdown.

I have no faith that money from ending the Bush tax cuts, much less adding new wealth tax will be spent wisely. Only need to look at recent fiscal history to prove my concerns.

The current paradigm of massive spending that benefits the oligarchy is endemic, and both sides of the political divide are guilty (the Republicans for doing it, the Democrates for not stopping it). I don't see a way out of this predicament short of a fiscal catastrope. Obama sure can't (or won't) stop it.

Kend's picture
Kend 11 years 50 weeks ago

All the rich will take there money and run to the low tax countries. The French will go to Germany and the Americans will come to Canada. The Koch brothers already started with a half a billion dollar pilot project in Alberta Canada with just the mention of higher taxes. God bless America you are going to need it.

Palindromedary's picture
Palindromedary 11 years 50 weeks ago

Right on, France! Setting a good example, as always, for the rest of the world. Remember the good old days that made Mr. Guillotine so revered. And if all those goons scurry away to Germany then maybe France could confiscate all their French property, bank accounts, and means of production. And maybe the rest of the world, like Germany or the US, would see how well it worked for France that it just had to be done here as well. Those slimy devils would have to migrate to Argentina or build their mansions in the Antarctica where they could lord their arrogance over the Penguins. Or maybe the Argentinians would just get sick of them and line them all up, firing squad fashion, and do the world a big favor. Tyrant pin-ball, anyone? Ping, ping, ping, bang, bang, chop, chop!

"Do you hear the people sing
Singing the song of angry men
It is the music of a people
Who will not be slaves again
When the beating of your heart
Echoes the beating of the drums
There is a life about to start
When tomorrow comes"--
--lyrics to "Do You Hear The People Sing?" from Les Miserables

Palindromedary's picture
Palindromedary 11 years 50 weeks ago

And let's hear it for those fantastic Europeans for overwhelmingly turning down ACTA... the 3rd(?) attempt at destroying our on-line freedom and privacy by wealthy mobsters and crooked politicians bent on ripping us all off. The artists deserve a certain amount of protection...but those mobster corporations, the middle-men, don't. And it originated in the US, in secret, and thanks to Wikileaks we all found out just how horrible it would have been if this were made law.

Obama's "more open government" has been the most secretive, and conniving, and goes after whistle-blowers who report government and corporate wrongdoing.

Thank the almighty Flying Spaghetti Monster for his wisdom and beneficence for putting these evil men back into the box...for a little while longer. Praise FSM!

cwither's picture
cwither 11 years 50 weeks ago

Let's hope that the United States can learn a lesson from French economics! Hopefully President Hollande will prove to the world that austerity is not the only way to balance a budget. The wealthy in France seem to be more willing to spend money to improve their society. When will we return to that sense of "social contract?"

Thanks for continually pointing this out, Thom.

Mark Saulys's picture
Mark Saulys 11 years 50 weeks ago

The Right always appropriates the language of the left for their fraudulent campaigns. In the '80s, after two decades of popularity for "bleeding heart" "victimology" from the Left, the Right decided it would be clever if they characterized themselves, the rich and powerful, the dominators of society, as the "victims of society" for whom all our hearts should bleed because they had to pay taxes or abide by regulations.

There was a time not long ago when the rich and powerful were considered - and literally referred to as - parasites for profitting so greatly from the labor of working people. Today the right has appropriated that language and now calls the people "parasites" for wanting universal, free healthcare and the like that the rich and powerful will have to pay taxes for when it, in fact, is the just compensation of the working people for performing the labor of society and in the employ of the rich and powerful.

sacredori's picture
sacredori 11 years 49 weeks ago

Correction-from an American living in France

Thom, you keep saying that Hollande has promised to bring the retirement age back down to 60. This is not true. He wants to restore this possibility only for people who started working at an early age or who do hard labor:

A lot is made of France electing a socialist president over Sarkozy, what you don't understand over there is how much people over here hated him. The election results are due just as much to the hatred of Sarko and the split conservative vote with the Front National, than with Hollande being a socialist. Besides that, the socialist party here are more like blue dog democrats than anything- they are pro milton friedman free market economics for the most part.

Thank you Louise for all your hard work!

Le Gaulois's picture
Le Gaulois 11 years 48 weeks ago

It is indeed a good idea to have everyone pay its fair share, however France's situation will keep on getting worse if their government does not change the political framework in which it operates. If it is unable to implement reasonable import duties on targeted industries or countries as well as leaving the euro zone straight jacket that prevents devaluation and monetization it will end up on the barricades once more !

Le Gaulois's picture
Le Gaulois 11 years 48 weeks ago

In total agreement with you Sacredori!

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