Reagan went along with some Tip O'Neil tax increases to win his war with the Soviets.
But Reagan lowered tax rates, reduced government red tape, and got the free market going.
Grew the GDP and cut the unemployment rate at several times that of Obama.
The numbers don't lie.
How do you increase taxes and lower tax rates at the same time? Voodoo economics.
Good God Almighty! Do I really have to explain that all taxes are not created equal?
Some of those so-called Reagan tax increases were simply ending some deductions. The federal gas tax went from 4 to 9 cents...temporary. Higher cigarette taxes.
The worst were raising the capital gains tax rate and the corporate rate in 1986.
Much of this came about because Reagan was the first to get suckered into a 3-1 ratio of spending cuts to tax increases.
�Tax Equity and Fiscal Responsibility Act of 1982� Somehow the cuts never happened and coupled with the Cold War spending increases the national debt tripled.
Meanwhile back at the ranch...Reagan got HIS tax cuts.
The federal income tax with 16 brackets of 14 to 70 percent were chopped to TWO brackets of 15 and 28 percent.
Capital gains tax went down to 20 percent, but in 1986 kicked up to 28 percent.
The unemployment rate dropped from 7 percent in 1980 to 5.4 percent in 1988. The inflation rate dropped from 10 percent to 4 percent.
GDP growth was at -0.03 percent in 1980 under Carter. 4.1 percent in 1988 under Reagan.
Federal tax receipts increased 60 percent.
Reaganonomics worked.
