BurtWorm
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Tue Jun-08-04 11:43 AM
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Fight the Myth! Reagan Was a Tax Increaser! |
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Edited on Tue Jun-08-04 11:44 AM by BurtWorm
See Paul Krugman for an explanation. http://www.nytimes.com/2004/06/08/opinion/08KRUG.htmlThis is a disgusting myth (Reagan the Mighty Tax Cutter) that has to be combatted. Reagan agreed to raise taxes when the numbers looked bad--in the budget, in the Congress and in the polls.
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BurtWorm
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Tue Jun-08-04 12:04 PM
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1. Reagan cut taxes once. He raised taxes twice. |
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Once on corporations, once on payrolls.
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BurtWorm
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Tue Jun-08-04 12:41 PM
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2. Middle and low income families saw a net gain to their taxes in the 80s |
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From Krugman:
Mr. Reagan's second tax increase was also motivated by a sense of responsibility — or at least that's the way it seemed at the time. I'm referring to the Social Security Reform Act of 1983, which followed the recommendations of a commission led by Alan Greenspan. Its key provision was an increase in the payroll tax that pays for Social Security and Medicare hospital insurance.
For many middle- and low-income families, this tax increase more than undid any gains from Mr. Reagan's income tax cuts. In 1980, according to Congressional Budget Office estimates, middle-income families with children paid 8.2 percent of their income in income taxes, and 9.5 percent in payroll taxes. By 1988 the income tax share was down to 6.6 percent — but the payroll tax share was up to 11.8 percent, and the combined burden was up, not down.
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Wed Apr 24th 2024, 07:36 PM
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