Kennedy-Reagan v. Bush-Obama: Taxes That Work Versus Those That Don’t

Even some conservatives do not understand well enough that not all tax cuts stimulate growth.

Kennedy-Reagan v. Bush-Obama: Taxes That Work Versus Those That Don’t

Ed. Note: Want more job opportunities? Want better paying jobs? Want to keep more of what you earn?
Well, you CAN’T with the tax & spend, big government, crony political government-pick-the-winners policies of the Obama Administration or the more-of-the-same policies promised by Hillary Clinton, Bernie Sanders, Elizabeth Warren, Joe Biden, etc.

We can do better. We can return to the robust economies of Kennedy / Reagan. Here is how they did it:
KENNEDY’S TAX CUTS: Kennedy proposed to cut income tax rates across the board by 30%. Kennedy’s proposals adopted in 1964 cut the top tax rate from 91% to 70%, as well as reduced the lower rates.
Over the next year, economic growth soared by 50%, and income tax revenues increased by 41%! By 1966 unemployment had fallen to its lowest peacetime level in almost 40 years. It was estimated that Kennedy’s tax rate cuts expanded the economy in just two years by 10% above where it would have been.

REAGAN’S TAX CUTS: In 1981, Reagan cut the top income tax rate of 70% to 50%, with a 25% across the board reduction in income tax rates for everyone else. In 1986 he cut the top rate to 28%, with only one other rate of 15% for everyone else. Reagan also cut corporate income tax rates.

By 1982 the economy took off on a 25-year economic boom that has been called ‘the greatest period of wealth creation in the history of the planet.’

In 1984, the economy grew by 6.8% in real terms, the highest in 50 years. Nearly 20 million new jobs were created during the next 7 years. Unemployment fell to 5.3% by 1989. Total federal revenues doubled from 1980 to 1990, growing from $517.1 billion to $1,031 billion. In Reagan’s last budget year, fiscal 1989, the federal deficit had declined to $152.5 billion.

Republished from American Spectator, by Peter Ferrara, April 8, 2009.

Ferrara flipped

by Peter Ferrara

“We tried that, and it didn’t work,” Obama and his partisans sneer in response to arguments that tax cuts are the key to restoring economic growth. Instead they support an economic recovery plan based on increased welfare, government spending, and federal deficits and debt as the key to growth. Anyway, they have a “balanced package” with tax cuts too.

This content is published under the Attribution-Noncommercial-Share Alike 3.0 Unported license. Please honor attribution.

Leave a Reply

Your email address will not be published.