View Single Post
Old 10-01-2013, 02:37 PM   #92
Fedaykin
Ring of Famer
 

Join Date: Nov 2006
Posts: 5,123

Adopt-a-Bronco:
None
Default

Quote:
Originally Posted by BBII View Post
Only problem with your theory is that federal revenue exploded during Reagans term. The government just grew even faster.
No it didn't, it actually fell off a cliff from the previous 8 years.

Between 1981 (the last year of the Carter budgets and 1989 (the last year of Reagan budget), tax receipts grew at an average annual increase of 6.5%

Now compare that to the previous 8 years which includes a recession:

73-81: 12.7%

Hell, even if you only take Carter's 4 years (and the poor economy/recession that dominated that time), it actually makes Reagan look even worse, with and average of 14%/year increase.

http://www.taxpolicycenter.org/taxfa....cfm?Docid=200

The idea that Reagan increased tax revenue by cutting taxes is pure myth that basic math destroys.

The thing propping up Reagan (and Carter)? The Baby Boomers coming into their prime. A big bump in demand and work force. Without it, Reaganomics likely would have resulted in a net loss of tax revenue, just like happened under Bush II.
Fedaykin is offline   Reply With Quote