Reagan Reminder on Taxes

The economy was a mess in the 1970s and very early 1980s – in many ways, even worse than today’s recession. We were pulled out that quagmire through large, pro-growth tax cuts, deregulation, and sound monetary policy – the exact opposite of what’s being pushed currently on the policy front.

Consider the following from The Ronald Reagan Presidential Foundation & Library:

Each year, we celebrate important anniversaries related to the Reagan Presidency. On August 13, 1981, President Ronald Reagan signed into law the Economic Recovery Tax Act. The tax cut represented $750 billion in tax cuts over five years and is still considered the largest tax cut in American history. While signing the Economic Recovery Tax Act and the Omnibus budget Reconciliation Act, President Reagan remarked, “I think they represent a turnaround of almost a half a century of a course this country’s been on and mark an end to the excessive growth in government bureaucracy, government spending, and government taxing.”

Listen to Reagan’s radio remarks on the signing of the Economic Recovery Act of 1981 here.

All of this is, to say the least, an important reminder on public policy that actually makes economic sense.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council