Thom Hartmann: If you make a living sitting on your butt, waiting for your dividend check...

[thomhartmann]

The American news media has pointed out at length that the new government in France raised taxes, so that after somebody has made their first million dollars in a year, additional dollars in that year are taxed at a 75 percent rate. The millionaires are unhappy, but it’ll save the country. There are two parts to this story that have to do with the United States that you probably didn’t hear or see on the American news. The first is that for more than half of the twentieth century, the top tax rate on rich people here in the United States was at or above that French range - here it was between 74 and 91 percent. During those decades of high tax rates on the Romney-rich, by the way, we had the fastest and strongest growth of the middle class in our nation’s history. In fact, most credible economists during that era said that the REASON for the strong growth of the middle class was because the super-rich had high tax rates after they’d made their first million dollars a year. The result of that was that instead of taking more millions, industrialists left the money in their businesses - and that money was used to pay decent, middle-class wages to American workers. The second thing you probably haven’t heard much about in the American Media is that we have two types of federal income taxes.

While Mitt Romney famously complained that 47 percent of Americans don't pay federal income taxes - mostly because they're working at wages below the poverty level, are in the military, or are retired - what he didn't mention is that there's a special top tax rate just for people like him. The top tax rate in America for working people is 35 percent, whether you have a white, blue, or pink-collar job. If you earn your living through the labor of your body or the efforts of your mind, you can pay up to a top federal income tax rate of 35 percent. BUT - there is one super-deluxe special top tax rate just for people like Mitt Romney and Paris Hilton. If you're one of the blessed few in America - and it really is a blessed few - who make their money by inheritance or by using money to make money, then the most - the MOST - you'll ever pay in federal income taxes is 15 percent. It's called the "capital gains" or "carried interest" tax rate - a special rate for banksters, so their tender sensibilities are never offended by having to pay more than 15 percent in federal income taxes. That's why Mitt Romney only paid 14 percent on his millions in income last year - because his top rate was 15 percent, and he knocked it down a point by taking a deduction for his donations to the Mormon Church.

So, what does this have to do with France? Here's where it gets really interesting. The French figured out that high tax rates on millionaires was both good for their economy and for their country. And they also figured out that it's stupid to give a super-low tax rate to banksters like Mitt Romney and heiresses like Paris Hilton. So they raised their capital gains rate to be the same as their "ordinary income" tax rate. Now this isn't going over well with the very, very few people in France who live off billions inherited from grandpa, or who make their living hustling stocks. They've declared themselves the "Pigeons" of the country [[ Graphic of FT headline? ]] and are complaining that they're having to pay up just like everybody else. The French government, of course, is ignoring them. But here in the US, we still have this super-duper special Paris Hilton and Mitt Romney tax rate - the Capital Gains rate - that you probably haven't heard a word about in the press. And you certainly haven't heard that other countries - most recently, France - think it's stupid and are taxing their Paris Hilton's and Mitt Romney's at the same rate as they do their bus drivers or surgeons or executives.

The Big Picture with Thom Hartmann on RT TV & FSTV "live" 9pm and 11pm check www.thomhartmann.com/tv for local listings

[fleur-de-lisa]

1. I love that he's got Paris Hilton and MittWit . . .

on the screen at the same time . . . HA HA HA HA !!!!