Supply-Side Economics

[whell]

Originally Posted by finnbow

Not only that, Whell conveniently fails to mention that Reagan also significantly raised taxes after deficits ballooned following his tax cut:

After Reagan's first year in office, the annual deficit was 2.6% of gross domestic product. But it hit a high of 6% in 1983, stayed in the 5% range for the next three years, and fell to 3.1% by 1988...

So, despite his public opposition to higher taxes, Reagan ended up signing off on several measures intended to raise more revenue.

"Reagan was certainly a tax cutter legislatively, emotionally and ideologically. But for a variety of political reasons, it was hard for him to ignore the cost of his tax cuts," said tax historian Joseph Thorndike.

Two bills passed in 1982 and 1984 together "constituted the biggest tax increase ever enacted during peacetime."

http://money.cnn.com/2010/09/08/news...axes/index.htm

Uh, no.


Top rate on regular income when Reagan took office was over 69%. When he left, it was 28%. Capital gains - you know, that tax that the rich guys pay - went from 23.7% in 1980 to 28% when he left.