Then Ronald Reagan won in 1980 and immediately pushed a major tax cut through Congress.
Not…..really. Although this is commonly parrotted.
What the Reagan package did was lower marginal rates significantly, but also removed the tax loopholes that enabled a high wage earner to “invest” in government approved “investments” and get nothing back in return other than a significant decrease in their Adjusted Gross Income.
Hence, the effective rate of taxation didn’t change much. A look at the second table on this list demonstrates that rather well.
Historical Average Federal Tax Rates for All Households
average federal tax rates for all households, by comprehensive household income quintile, 1979 to 2014.
This did not happen in the 1980s, and it has never happened, and it never will happen.
Speaking generically, the Fed will tell you (and they have told Congress this in the past) that tax cuts, on average, “pay for themselves” to about 2/3 of their cost. So, if we cut taxes by a buck, I get 66c back in additional revenue. This is why we can simultaneously have (a) growing deficits and (b) growing tax receipts. Which is what we currently have.
Whether a tax cut is, overall, “good for the economy” or not has a lot to do with the availability of investment capital in in the economy. In the 80’s, investment capital was at a premium, so the tax cuts were very stimulatory. The subsequent tax cut under Bush….not so much, as the economy was flush with investment capital. The jury is still out regarding the present Trump package on its overall effect.
Only one president in the last fifty years has seen a balanced budget — Bill Clinton.
Yep. Funny thing about that is that Clinton never intended to balance the budget. His intent was to cut the deficit by 2/3 by the time he left office, but he caught the wave of the dot-com boom, which burst in March of 2000.
Republicans also, bizarrely, have claimed to be the better Party in matters of foreign policy. Never mind that Nixon deliberately took steps to scuttle the negotiations Lyndon Johnson was conducting to end the Vietnam War near the end of his presidency
Interesting that you omit the fact that Vietnam itself was a Democrat franchise.
Depending on whom you ask, neither major Party has done a great job with foreign policy since Wolrd War II
Well, on THAT we agree.
which we can ascribe largely to the arrogance of being the world’s leading military power combined with the absurd paranoia of the Cold War, in which we told ourselves that we had an implacable enemy in the Soviet Union and had to go to ridiculous, dangerous, too often murderous lengths to defeat, and now the even more absurd “war on terror.”
And now, the Democrats have again taken up the “Russia is our worst enemy” nonsense. Whose irresponsible rhetoric actually has gotten to the point where it’s making the world more dangerous.
It is not a good idea to be too polite in politics. One need not stoop to the depths of Donald Trump, making up demeaning nicknames for opponents and generally acting like the spoiled child he is.
Yes, Trump is an asshole. Just ignore his rants, and enjoy the economic growth, which we sorely needed after Mr. Obama, who holds the ignominious title of being the first President since Hoover to never have a single year above the milestone 3% GDP growth.
Hoover. Heady company, that. :-)