No, no, no, fagboy. Stop bad-mouthing your loverboy Ronnie again. Very uncool, bad form. You're the Laffer Curve expert, remember? According to your expert opinion, the Laffer Curve teaches us we should always cut taxes when we're in the "sweet spot", right?
And that's exactly what Ronnie did. He followed your prescription and cut taxes, thereby lick-stimulating your sweet spot so much that federal revenues swelled by 76% in eight years! From $517 billion in FY 1980 to $909 billion in FY 1988. FACT JACK! So stop bitching about Ronnie's tax cuts. He was just following your Laffer Curve advice. He validated your innermost desires to have your sweet spot licked and stimulated!
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Originally Posted by lustylad
So Reagan cut taxes and revenue dropped....he then raised taxes and tax revenue increased! Hmmmmmmmmmm
Yet you Tea Goats think that cutting taxes will always raise tax revenue..
Read the article and learn what a hillbilly you are.
http://www.californiaprogressreport....s-grow-economy
When conservatives tell you, "Reagan cut taxes and revenue increased," they don't mention those huge tax increases. Nor do they mention the revenue drop following the tax cuts. The size of the economy increases over time anyway, so there is a natural rate of increase that occurred as well. Saying the Reagan tax cuts increased revenue is like saying you skipped lunch and gained a few pounds, without mentioning the 12-course dinner with three deserts.
Ronald Reagan applied ideology to our government's finances and cut taxes from the then-top rate of 70% down to 50%, and then, later, to 28%. (George HW Bush raised top tax rates to 31%.) The top corporate tax rate was cut in 1987 from 46% to 40% and the next year to 34%. It turned out that if only (and a unicorn) didn't work out so well when it hit the wall of reality. Now We, the People are suffering the consequences.
Conservatives say that the economy boomed, and more revenue came in because of the tax cuts. What actually happened was government deficits and the resulting accumulated debt exploded, while our defunded government has since been unable to maintain the infrastructure and public structures (laws, courts, regulations, protections, schools, etc...) that keep our economy competitive and our standard of living high. All you have to do is look at the record. Let's do that here.
In 1981 -- Carter's last budget year -- the on-budget (not from Social Security) tax receipts were $469 billion which was a 16% increase over the prior year. 1982 tax receipts were $474.3 billion, down to 1.1% over 1981, and the on-budget deficit shot up to $120 billion, a shocking increase of 62% in a single year! 1983 receipts were $453.2 billion, a drop of 4.4%, creating a deficit of $208 BILLION -- an increase of 73%! In just those two years following the tax cuts our debt increased by $328 billion!
Then Tax Increases
A panicked Congress passed the 1984 Deficit Reduction Act, the largest tax increase in our history. (Not so much on the wealthy, of course.) Tax receipts climbed to $500.3 billion, a 10.4% increase, and the deficit shrank almost 11% to $185.6 billion. But this was still very high. So in 1985 Congress passed the Gramm-Rudmann-Hollings Anti-Deficit Act, and in 1985 tax receipts were $548 billion, a 9.5% increase. But by then the huge military spending increases and the interest on the debt were kicking in -- "structural" deficits were established -- and the deficit increased to $221 billion, an increase of 19%. (The "Tax Rates And Growth Over Time" charts below show that economic growth declined.)