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Given Reagan increased Defense Spending and lowered tax RATES, How did taxes collected double?
9 Answers
- Elwood BluesLv 74 years ago
Flat-out false.
FY 1981 == $599 billion tax revenue
FY 1988 == $909 billion tax revenue
That's a 51.8% increase, not doubling.
Meanwhile, Reagan campaigned against Carter's horrible terrible no good $25 billion per year deficit, but by the end of Reagan's 8 years, the deficit was about $250 billion!
In other words, "supply side economics" demonstrated its first huge failure under Reagan.
BTW, under Obama, tax revenues increased from $2.1 trillion to $3.268 trillion, amounting to a 55.6% increase in revenue, while the yearly deficit dropped from Bush's $1 trillion to half a trillion. Should we still be impressed by Reagan's 51.8% revenue increase while quintupling the deficit?
- hillbillyLv 74 years ago
This created MORE JOBS, so it make up the difference. ALWAYS HAPPENS LIKE THIS. Look back in our history.
- Anonymous4 years ago
It did not. Reagan ran up a huge deficit. Up to that point it was a bigger deficit than all previous presidents before him combined. It only looks small now because George W ran up an even bigger deficit by cutting taxes and increasing defense spending to fight 2 wars (one of them an illegal one that he lied us into) at the same time. Bill Clinton raised taxes on the highest earners and he cut defense spending. That was why he not only balanced the budget but he had a budget surplus when he left office. Obama reduced the deficit when he let Bush's tax cut for top earners expire in 2012. The economic recovery surprisingly quickened after the rich had their taxes raised. .
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- Anonymous4 years ago
Regan was the first president
- Anonymous4 years ago
.
- Anonymous4 years ago
Not true
- Anonymous4 years ago
He ran up the debt. .. fckn dick