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| Re: GOP Budget Cuts - What was that all about? (731275) | |||
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Re: GOP Budget Cuts - What was that all about? |
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Posted by David Fairthorne on Mon Feb 7 15:38:51 2011, in response to Re: GOP Budget Cuts - What was that all about?, posted by italianstallion on Thu Feb 3 18:52:11 2011. Did you know Reagan raised taxes?He raised business, energy and payroll taxes, but he didn't raise income tax, and on balance he was a big-time tax cutter. He also increased military spending. Based on the concept of the Laffer curve, he thought that if taxes were cut tax revenue would actually increase. But that's not what happened. Taxes went down and so also did tax revenues, resulting in very substantial budget deficits. According to the Wikipedia article "Reaganomics": "In order to cover new federal budget deficits, the United States borrowed heavily both domestically and abroad, raising the national debt from $997 billion to $2.85 trillion, and the United States moved from being the world's largest international creditor to the world's largest debtor nation. Reagan described the new debt as the "greatest disappointment" of his presidency." |
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