The truth about Reagan tax cuts

[74dodgedart]

From that radical, left-wing National Review

http://www.nationalreview.com/nrof_bartlett/bartlett200310290853.asp

Sent one of my repub co-workers over the edge..

From article:

"The only problem with this analysis is that it is historically inaccurate. Reagan may have resisted calls for tax increases, but he ultimately supported them. In 1982 alone, he signed into law not one but two major tax increases. The Tax Equity and Fiscal Responsibility Act (TEFRA) raised taxes by $37.5 billion per year and the Highway Revenue Act raised the gasoline tax by another $3.3 billion."

...

"In 1984, Reagan signed another big tax increase in the Deficit Reduction Act. This raised taxes by $18 billion per year or 0.4 percent of GDP. A similar-sized tax increase today would be about $44 billion."

...

"The Consolidated Omnibus Budget Reconciliation Act of 1985 raised taxes yet again. Even the Tax Reform Act of 1986, which was designed to be revenue-neutral, contained a net tax increase in its first 2 years. And the Omnibus Budget Reconciliation Act of 1987 raised taxes still more."

...

"The year 1988 appears to be the only year of the Reagan presidency, other than the first, in which taxes were not raised legislatively."

[indepat]

1. And never forget the highest marginal rate under ERTA kicked in at +/- $20

thousand of taxable income for the single tax payer who also was sending Uncle Sam 7+% in income-taxable payroll taxes that the well-to-do were excused from on income over the base amount. So a single schmuck earning less than $30M was sending Uncle Sam more than 35% of every marginal dollar earned whereas those with million-dollar incomes/ball contracts were sending only 28%. And a major architect of those highly regressive payroll taxes, Alan Greenspan, has recently proffered (just before his renomination as Fed Chairman) that social security benefits will need to be slashed to pay for GWB's latest round of tax cuts which benefit almost solely guess who?
The good news: a bit of those saved taxes will ultimately trickle down to the little people.

[Racenut20]

2. Should have called it the "Big Bank Tax Act"

Sweetened the depreciation rates on buildings. There was a big upward flux on commercial constructin, vacation condos, REITs....

Also 3 year income averaging, so those getting married, entering the work force from college, etc could back average their taxes and reduce their rate when their income went up.

Passed relief to the marriage tax penalty.

By 86, the "Dole Tax Increase", had removed all that from the tax code.

Savings and Loans (remember them) were all overextended by financing the building boom, and the investors in these tax reduced buildings began to default. The Savings and Loans went bankrupt, the big banks took over the loans. The Gov. did an "off budget" bailout to the tune of 60 billion to the depositors.

And all the Republican donors lived happily ever after.