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Why did President Reagan raise taxes? Should taxes be raised for similar reasons today?
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But let’s just disengage ourselves from the myth that Ronald Reagan never raised taxes. He did. And here are four big ones. So I hope this will clear the air for some of the groups today.
In 1982, the Tax Equity and Fiscal Responsibility Act, that rolled back about a third of his ‘81 tax cuts, raised corporate tax rates, and to a lesser extent income tax rates. Raised taxes by almost 1 percent of GDP, which at that time was the largest percentage in peacetime increase ever.
[The] 1982 gas tax increase. [The] 1983 Greenspan commission — we know so well; [fellow commission member Alice Rivlin] remembers — we all … raised payroll taxes for lower and middle income households to higher than they were before Reagan’s ‘81 tax cuts. Then there was the 1984 deficit reduction tax.
Those are the big four. Then there was the Railroad Retirement Revenue Act, Consolidated Omnibus Budget of ‘85… ‘85…’87 Continuing Resolution, Omnibus Budget Reconciliation Act of ‘87, that was $8.6 billion
So there were a lot of them. Just thought I’d throw that in.
According to Josh Green, writing for Washington Monthly, Reagan’s 1982 tax hike raised $100 billion over three years, which at the time was the biggest tax increase since World War II. He also raised the tax on gasoline that year, as Sen. Simpson noted, and then raised taxes overall again in 1984 — the year he was reelected — by $50 billion over three years, primarily by rewriting the code to close business loopholes. In his second term, Reagan’s historic Tax Reform Act of 1986 increased taxes on corporations by $120 billion over five years — the largest corporate tax increase in history.
I thought this was interesting : President Reagan’s historic Tax Reform Act of 1986 increased taxes on corporations by $120 billion over five years — the largest corporate tax increase in history."
I thought this was interesting : President Reagan’s historic Tax Reform Act of 1986 increased taxes on corporations by $120 billion over five years — the largest corporate tax increase in history."
The dollars increased, but the rate was lower. When people state that they have "cut taxes", they are referring to the tax rates. Due to economic expansion, the govt actually took in more money on corporate taxes, but the rates were lower...
And for the record, the 1981 tax cut was valued at $750 billion over 6 years. However, a separate bill in 1982 canceled some of the changes before they went into effect. By the way the 1986 tax cut bill was sponsored by two Democrats.
Also, are you trying to argue that closing tax loopholes is a bad thing? The corporate tax rates dropped in 1986, but revenues increased with the closure of several tax loopholes and elimination of tax havens.
Last edited by Frankie117; 07-26-2010 at 04:15 PM..
The dollars increased, but the rate was lower. When people state that they have "cut taxes", they are referring to the tax rates. Due to economic expansion, the govt actually took in more money on corporate taxes, but the rates were lower...
Exactly right.......Reagan lowered the marginal rate.......................The Reagan Tax Cuts: Lessons for Tax Reform (http://www.house.gov/jec/fiscal/tx-grwth/reagtxct/reagtxct.htm - broken link)
I thought this was interesting : President Reagan’s historic Tax Reform Act of 1986 increased taxes on corporations by $120 billion over five years — the largest corporate tax increase in history."
Reagan made the mistake of believing democrats would cut spending......http://www.ritholtz.com/blog/2010/07........“Reagan signed into law the Tax Equity and Fiscal Responsibility Act in 1982 before the recession was even over and went on to sign 10 more major tax increases during his administration. By 1988 he had taken back half the 1981 tax cut. These tax increases were most enacted as part of budget deals that cut domestic discretionary spending. Compared to today’s Republicans, Reagan was a model of fiscal responsibility.” He got screwed.......Unfortunately Republicans still have not learned that Democrats will never reduce spending.
It was the result of a Republican Executive and a Democratic Congress, and a fear among both parties of exponential debt growth. A fear which caused some rational thinking back then. A fear that neither party feels nowadays and which the lack of has cost both parties any reasonable thought.
Increase spending without raising taxes? Come on!
Cut taxes without cutting spending? Don't be ridiculous!
You can't pay for either course of action, both Reagan and the Democrats of yore knew that.
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Presidents do not raise or lower taxes, Congress does. Presidents also do not spend, Congress does.
lol...let me guess
