Real facts about Pres­i­dent Rea­gan’s tax cuts

The Star Democrat - - OPINION - By BOB THOMAS Bob Thomas writes from Eas­ton.

I have to take is­sue with much of what Mike Brown wrote re­gard­ing Pres­i­dent Rea­gan’s 8 years in of­fice. It looks as if much of what he is writ­ing is taken from the Wash

in­g­ton Post, which is the last place we can ex­pect to get any po­lit­i­cal truth. They are bi­ased Democrats and make it quite ob­vi­ous in their daily false news.

There are more ar­ti­cles that can be found on the in­ter­net be­sides Cato In­sti­tute that will dis­pute much of what Mr. Brown is writ­ing to ex­plain why the coun­try per­formed so well dur­ing the Rea­gan years. Things went so well that once his term was over the na­tion elected an­other Repub­li­can. His eight years was sim­i­lar to the roar­ing 20s when our coun­try did so well un­der the Repub­li­cans War­ren Hard­ing and Calvin Coolidge be­tween 1921 and 1929.

This is some of what Forbes has writ­ten about Pres­i­dent Rea­gan:

“His first bud­get pro­posal con­tained sig­nif­i­cant pro­gram cuts and a $25 bil­lion in­crease in the de­fense bud­get. In July 1981, just six months af­ter he took of­fice, Congress passed his plan to cut taxes by 25% over three years.

“His com­mit­ment to eco­nomic prin­ci­ples founded on free­dom and in­di­vid­ual re­spon­si­bil­ity was not al­ways po­lit­i­cally ad­van­ta­geous. The re­ces­sion early in his pres­i­dency pulled his ap­proval rat­ing be­low 40%. Repub­li­cans lost 26 seats in the House of Rep­re­senta- tives in 1982, and ex­pressed con­cern about his “stay the course” mes­sage in 1984. But Pres­i­dent Rea­gan had faith in his agenda, and it paid off.

“Over the eight years of his ad­min­is­tra­tion, 16 mil­lion new jobs were cre­ated; in­fla­tion dropped from 13.5% in 1980 to 4.1% in 1988; un­em­ploy­ment fell from 7.6% to 5.5%; and the over­all econ­omy grew by 40%. It’s no co­in­ci­dence that tech com­pa­nies flour­ished in the 1980s and 1990s un­der his proin­no­va­tion poli­cies, which set the stage for a smaller role for the gov­ern­ment in the econ­omy and gave the mar­kets the free­dom to work for them­selves.

“Not only did Pres­i­dent Rea­gan’s poli­cies have a long-term ef­fect on the eco­nomic growth of Amer­ica; they also per­ma­nently shifted the way Amer­ica ap­proached eco­nomic pol­icy. To­day’s de­bate over taxes no longer con­sid­ers a 70% in­come tax rate for higher brack­ets. In­stead, the dis­cus­sions tend to fo­cus on a few per­cent­age points in ei­ther di­rec­tion of 35%.”

This is just a small part of the many things that I have found by search­ing the in­ter­net. I doubt se­ri­ously if all of th­ese writ­ers are wrong and only the Washington

Post has it right. That is the last or­ga­ni­za­tion that should do a fact check.

While it is true that un­der Pres­i­dent Rea­gan the na­tional debt did rise sig­nif­i­cantly, there was some jus­ti­fi­ca­tion for that. He spent bil- lions on strength­en­ing our mil­i­tary, which the pre­vi­ous pres­i­dent al­lowed to be in need of up­grad­ing. In ad­di­tion to that he also had a House of Rep­re­sen­ta­tives that was con­trolled by Democrats and they went on a wild spend­ing spree as they usu­ally do. Mr. Brown wants us to think that the money spent on the mil­i­tary was wasted on an­ti­quated bat­tle­ships and ex­pen­sive Star Wars de­fense. I sus­pect that is merely his opinion and noth­ing more. And let’s not for­get the pres­i­dent had a Congress that in­cluded more Democrats that had to sign off on that spend­ing. He seems to be some­what si­lent on that is­sue.

I have no doubt in my mind that Pres­i­dent Trump will do great things for this na­tion dur­ing his up­com­ing eight years. He has not been in of­fice a year yet and he has al­ready cre­ated many jobs, and watched the stock mar­ket Dow Jones av­er­age in­crease 26 per­cent since he was elected. Also the un­em­ploy­ment rate is lower than it has been in a long time. If he gets a de­cent tax re­duc­tion in place as he wants, the econ­omy will flour­ish just as it did un­der Pres­i­dent Rea­gan.

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