Obama's Economic Plan Fails Where Reagan's Succeeded

Reader Comments
Back to blog

The national debt began climbing like a skyrocket at the same point in time that Reagan's tax policies were put into place. At the beginning of Reagan's term the nominal national debt--a TWO-CENTURY accumulation--stood at only $900 billion. By the end of his term it had TRIPLED to $2.8 trillion.
Every subsequent further reduction in tax rates has been followed closely by another upward surge in the growth of debt. George W Bush entered office with a debt balance of $5.7 trillion. The Bush tax cuts were enacted. By the time he left office, the debt balance had grown to $10.6 trillion. He ran up nearly as much debt in 8 years as had all past U.S. presidents combined.
If you plot tax cuts and debt growth on a single timeline, the relationship between the two is unmistakable.
What is it about this totally obvious relationship that is so difficult for tax-cut advocates to grasp?

Jeff D of IN 2:52PM August 26, 2011

EPA and rushed through Congress anti-business obama legislation stops jobs. Topper _ obamacare. THIS MUST A GO-GO for jobs.
Why do you think $$$ trillions sit in companies ? They hear PUNISH THEM. You raise taxes on cigs in hope of stopping. Bill Clinton tax raise on yachts nearly closed down that business. Tax repealed.
Tax cuts are not enough:
"Lower tax rates are important, but they are not the only critical issue. Both the level of government spending and where that money goes are very important. And even when looking only at tax policy, tax rates are just one piece of the puzzle. If certain types of income are subject to multiple layers of tax, as occurs in the current system, that problem cannot be solved by low rates. Similarly, a tax system with needless levels of complexity will impose heavy costs on the productive sector of the economy."
http://www.heritage.org/research/reports/2003/08/the-historical-lessons-of-lower-tax-rates

Bill Hedges of MO 2:06PM August 26, 2011