L. Cranston posted:
Thanks, guys. The article didn't need that much proof to back it up.
Dire isn't telling all the facts. I'll bet each and every one of those tax cuts was followed by a raise in taxes after the cuts didn't work. I know for a FACT Reagan had to raise taxes, after his cuts, because the revenue didn't show up. Again, that's FACT. Seems like Bush1 got a lot of bad press, from his base, after promising 'no new taxes', then raising taxes.
Lamont, I suggest you research before commenting. It would reduce your embarrassment.
When inaugurated, Reagan inherited a nation with 16 tax brackets — ranging from marginal rates of 14 percent to 70 percent. By 1989, that was down to two brackets — with marginal rates of 15 percent and 28 percent. Plus, the inflation indexing that pushed taxpayers into a higher bracket was removed.
The increased revenue I posted was income tax revenue, only.
The taxes Reagan increased the Highway Revenue Act of 1982 was a temporary increase in the federal gas tax from 4 to 9 cents. This is a user fee tax, which most conservatives agree with as the revenue generally went to roads and infrastructure. Another was a cigarette tax (Consolidated Omnibus Budget Reconciliation Act of 1985.) Tax increases, but should not be confused with the income tax.
The one income tax change did not come until the Tax Reform Act of 1986 also provided for the elimination of the distinction between long-term capital gains and ordinary income. The Act mandated that capital gains be taxed at the same rate as ordinary income, raising the maximum tax rate on long-term capital gains to 28% from 20%. Prior to the ruling, capital gains were either taxed at lower rates than ordinary income under an alternative tax or received a partial exclusion from tax under the regular rate schedule. 60% of capital gains on assets held for at least six months were excluded from taxable income. Thus, the marginal tax rate on net long-term capital gains was only 40% of the marginal tax rate on other forms of income under the previous tax laws.
This income tax increased revenue for 1987 to 1988 during the Reagan presidency.