Did Reaganomics really work?

F

flaja

New member
Federal taxes, in one form or another, were raised in 7 of Ronald Reagan’s 8 years as President. So how do we know that it was Reagan’s tax cuts and not his tax hikes that increased government revenue on the 1980s? How do we know that it was Reagan’s tax cuts and not his massive government spending that expanded the economy?
 
flaja said:
Federal taxes, in one form or another, were raised in 7 of Ronald Reagan’s 8 years as President. So how do we know that it was Reagan’s tax cuts and not his tax hikes that increased government revenue on the 1980s? How do we know that it was Reagan’s tax cuts and not his massive government spending that expanded the economy?
Click to expand...
It didn't work, the whole concept has been a total failure.

He said debt doesn't matter, too!
 
froggie said:
It didn't work, the whole concept has been a total failure.

He said debt doesn't matter, too!
Click to expand...

Reagan's total tax collection went up across the entirety of his term.

THIS WAS BECAUSE OF INFLATION.

There was a larger % increase in revenue over the previous eight years than there was in Reagan's years. Reagan's tax cuts definitely reduced revenue, especially when he cut the marginal tax rate to 28%.

Beyond around 50%-70% tax rates, the right cannot have it's cake and eat it too. They have to cut taxes the old fashioned way - by cutting spending.
 
Watermark said:
Reagan's total tax collection went up across the entirety of his term.

THIS WAS BECAUSE OF INFLATION.

There was a larger % increase in revenue over the previous eight years than there was in Reagan's years. Reagan's tax cuts definitely reduced revenue, especially when he cut the marginal tax rate to 28%.

Beyond around 50%-70% tax rates, the right cannot have it's cake and eat it too. They have to cut taxes the old fashioned way - by cutting spending.
Click to expand...

Thanks, I never remember the exact facts!
 
froggie said:
Thanks, I never remember the exact facts!
Click to expand...

Compared to what we had had in the 1970s, there was no inflation under Reagan. Furthermore, didn't Reagan index the tax brackets so people could get a cost of living raise in their pay without being put into a higher tax bracket?

Note: I'm not talking only about income tax, but all federal taxation. In 1982 or 1883 federal social security taxes went up. By the time my mother had to retire in 2001 (several years after she lost me as a dependent) she was paying about 30% of her yearly income in federal income and FICA taxes.
 
PostmodernProphet said:
Reaganomics was never implemented....we got the tax cut side, but Tipper never agreed to the cost cutting side.....
Click to expand...

Actually, according to Wikipedia one of the tax hike deals Reagan made with the Democrats in Congress required Congress to cut spending. Reagan’s own budget director, David Stockton, once declared that Congress kept its side of the bargain.
 
flaja said:
Actually, according to Wikipedia one of the tax hike deals Reagan made with the Democrats in Congress required Congress to cut spending. Reagan’s own budget director, David Stockton, once declared that Congress kept its side of the bargain.
Click to expand...
I will admit that the Democrats in Congress agreed to cut spending.....but all it takes is a quick look at the budgets to see they never did it.....
 
flaja said:
Compared to what we had had in the 1970s, there was no inflation under Reagan. Furthermore, didn't Reagan index the tax brackets so people could get a cost of living raise in their pay without being put into a higher tax bracket?

Note: I'm not talking only about income tax, but all federal taxation. In 1982 or 1883 federal social security taxes went up. By the time my mother had to retire in 2001 (several years after she lost me as a dependent) she was paying about 30% of her yearly income in federal income and FICA taxes.
Click to expand...

Let's be careful here and not credit Reagan for bringing inflation under control. That would not be accurate. Inflation was never really a problem under Reagan. The period of high unemployment and high inflation rates began under the Nixon administration and continued under Ford and reached a zenith under Carter when the prime rate hit 21.5%, the highest in American history. The problem with inflation was brought under control when Carter appointed Paul Voeckler as Chairman of the Federal Reserve. Voeckler viewed bringing down inflation as a mandate and he was succesful through implementing tight monetary policy at the Fed though there was an unpleasant transition when the economy slowed and unemployment increased before inflation was brought under control. It was this transition phase in monetary policy, which though ultimately succesful that cost Carter dearly politically but the point being, this had all occurred before Reagan was even elected.
 
Last edited:
Correct Mott.
I guess none on here remember the Nixon wage and price freezes or the Whip Inflation Now mantra of Nixon and his flunkies?
 
Reagans economic record is clearly over rated for modern Presidents. It's only in comparison to the stagflation of the Nixon/Ford/Carter era that Reagan stands out but in reality the US economy grew at an annual rate of 2.3% during his presidency and which was equal to the population growth of the country at that time, which means that in real terms economic growth was marginal under Reagan. In terms of economic success Reagan was about average for a modern President and was not as successful on the economic front as Truman, Kennedy, Ford and Clinton were though he certainly performed better economically then Nixon, Carter and Dubya who had the poorest economic performance of post war Presidents.
 
Last edited:
flaja said:
Federal taxes, in one form or another, were raised in 7 of Ronald Reagan’s 8 years as President. So how do we know that it was Reagan’s tax cuts and not his tax hikes that increased government revenue on the 1980s? How do we know that it was Reagan’s tax cuts and not his massive government spending that expanded the economy?
Click to expand...

Here's an interesting take on this I remember from reading last year. Lucky I found it:

http://www.nytimes.com/2008/01/21/opinion/21krugman.html?_r=1&th&emc=th
 
You must log in or register to reply here.
Back
Top