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May 22, 2013
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Did Reagan Raise Taxes? Let GOP Candidates AnswerPosted on Jan 5, 2012By Joe Conason Politicians and their flacks lie every day, but it is unusual for someone prominent to utter a totally indefensible falsehood like the whopper that just sprang from the mouth of Eric Cantor’s press secretary on national television. While interviewing the House majority leader, “60 Minutes” correspondent Leslie Stahl suggested that he might consider compromise because even Ronald Reagan had raised taxes several times. Cantor’s flack then burst out in protest, saying he couldn’t allow her remark to stand. The premise of Stahl’s perceptive question was perfectly accurate, of course. But the rude Hill staffer is scarcely alone in promoting this super-sized lie about Reagan’s tax purity. And it would be worth discovering which of the Republican candidates likewise reject a fundamental truth about their party and its idol. That video exchange is revealing for several reasons, not least because it shows Cantor trying to suggest that he was always willing to “cooperate” with President Obama and the Democrats during the current session of Congress. The public’s distaste for the obstructionism spearheaded by Cantor and supported by the tea party faction is evident in polling data, which may well worry the ambitious Cantor, who almost openly hopes to depose Speaker John Boehner. The argument began when Stahl asked, “What’s the difference between compromise and cooperate?” Advertisement Then Stahl noted, “But you know, your idol, as I’ve read anyway, was Ronald Reagan. And he compromised.” Cantor retorted, “He never compromised his principles.” And Stahl recalled, “Well, he raised taxes, and it was one of his principles not to raise taxes.” “Well, he—he also cut taxes,” bumbled Cantor, a moment before his press secretary blurted from off camera: “That just isn’t true. And I don’t want to let that stand.” Over a rolling image of Reagan announcing his 1982 tax increase—sometimes described as the largest tax hike in American history—Stahl notes, a bit mischievously: “There seemed to be some difficulty accepting the fact that even though Ronald Reagan cut taxes, he also pushed through several tax increases, including one in 1982 during a recession,” as Reagan intones, “Make no mistake about it, this whole package is a compromise.” In fact, Reagan compromised on many issues, including an agreement negotiated with the late Democratic House Speaker Tip O’Neill to improve the solvency of Social Security for the past several decades. As Timothy Noah explained cogently in The New Republic (and not for the first time), Reagan repeatedly raised taxes in the years following the gigantic, budget-busting 1981 tax cut. Noah quotes former White House and Treasury official Bruce Bartlett, who served under Reagan and wrote a paper last year on “Reagan’s Forgotten Tax Record,” demonstrating beyond any doubt that the GOP icon raised taxes at least 10 times during his two terms as president and also during his governorship of California. In that paper, Bartlett destroys the mythology of Reagan, which has been made concrete by the right-wing activist and lobbyist Grover Norquist with the “anti-tax” pledge signed by most Republican politicians. It is understandable that Republican presidential aspirants, including the present crop, would seek to associate themselves with Reagan, a formidable leader who was often underestimated by Democrats. It is understandable, too, that they would emphasize the aspects of his career that appeal to their constituents, and elide the painful episodes of compromise and even disaster that marred his presidency. But in an election year when every Republican candidate has vowed to refuse any compromise on taxes that will reduce future deficits, the urge to erase history and distort facts must be exposed over and over again—because the lies are so often repeated by right-wing pundits and politicians. The real history: Reagan was forced to raise taxes because his cuts didn’t “pay for” themselves, as the mythology also insists—and he didn’t raise taxes enough to avoid a legacy of deficits that only Bill Clinton’s 1993 tax increase on the top tier began to remedy. The Bush tax cuts, like Reagan’s, set the nation on its current fiscal path, worsened by his multitrillion-dollar misadventure in Iraq. When the Republicans debate again, someone ought to test whether they will acknowledge those basic facts—or whether they will insist on the “big lies” of Republican fiscal stewardship.
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By Lafayette, January 7, 2012 at 4:31 pm Link to this comment
A HISTORY OF MARGINAL TAXATION
Go here to the TaxFoundation.org.
Download (listed at the bottom of the page) the detailed Federal Individual Income Tax Rates History from this site in pdf. It shows tax rates from 1913 to 2011, the entire history of US income tax.
Look through the years 1981 to 1988, the tenure of Ronald Reagan in the Oval Office. Look at each year’s listing of “Married Filing Jointly” / “Marginal Tax Rate”.
Find those years in which Reagan raised taxes. There ain’t one ...
Note that for that period the rates diminished - from 1982 at 70% to 1988 at 28%. (Consider also, that with deductions, that rate was significantly lower.)
MY POINT
Rates were indeed raised, according to this document, to 31% in 1991 and 39.6% in 1933. Today the are at 35%. But none of this happened in the Reagan Administration.
So how did Reagan raise taxes before he left office? With smoke and mirrors?
POST SCRIPTUM
Note that in 1934 they were at 63% and fluctuated as high as 91% (during WW2 and up to 1963). They then remained generally around 70% until Reckless Ronnie came to DC in 1981.
Also, the significant rise in the National Debt was initiated during those Reagan years and persists to this day.
Report thisBy purplewolf, January 6, 2012 at 9:59 pm Link to this comment
Did Reagan raise taxes,let the GOP candidates answer that. Come on now, you can’t expect them to remember anything that was said 30+ years ago, hell, they can’t even remember what they said 5 seconds ago.
Report thisBy Tricia, January 6, 2012 at 2:50 pm Link to this comment
(Unregistered commenter)
Cantor & the minions that refuse to acknowledge the fact the both Reagan, Big & Baby Bushs’ raised taxes. They also gave the biggest tax cuts to the wealthy all the while cutting funding for welfare, food stamps, programs aimed at helping the working poor. Republicans still think people using food stamps, collecting unemployment etc…are lazy no goods who thrive on the “welfare state”. What’s next…undoing the Affordable Healthcare Act, stripping Social Security & Medicare off the gov’ts budget spreadsheet. Taxes will pay for the Military, Congressmen’s salary, healthcare, retirement benefits & the like. Sorry folks, no more $$$ left to support infrastructure, medical research, public schools, law regulation enforcement ie., banks, wall street, environmental protections on & on & on. Gov’t too big, no…Gov’t controlled by an out-of-control Congress.
Report thisBy bonito, January 5, 2012 at 1:49 pm Link to this comment
I find it hard to believe that Republicans in Iowa
whom claim to be well educated would flock to a Dog
and Pony show that was put on in the first debate of
8 GOP hopefuls. The first view that registered with
me was that it looked like 8 Yo-yo’s on the same
string.
The only person among them that seemed to make a
little sense was Ron Paul when he said We should mind
our own business and stay out of the affairs of other
nations, as We would naturally demand that other
nations reciprocate.
As for the GOP saint Ronnie the Ray-gun, it was
common knowledge when he was President that he was
fitted for two hearing Aids. One so he could hear,
and the other to allow his handlers to tell him what
to do and say. It was even caught on camera on
several occasions where not only his Wife was telling
him his next move, but what to say. That prompted his
staff to require all News Media to submit questions
in advance of News conferences, I would assume so
that he could study his lines after all he was an
Actor, and certainly adept at learning his role.
Where is old Abe Lincoln when you need him, it is
Report thisquite evident that in today’s Politics, that the GOP
is capable of fooling completely most all
Republicans, and the majority of both the Democrats
and independents as well.
By bogi666, January 5, 2012 at 6:31 am Link to this comment
(Unregistered commenter)
Reaganomics is a system created by Reagan who had an INCAPACITATED MIND due to ALZHEIMER’S.Those whom idolize Reagan at age 71 with would have us believe that Reagan comprehended the supply side econometrics designed by scientists, mathematicians, physicists using econometric models based exclusively on math models with double back bending supply and demand curves, math models filling up blackboards with formulas, which are incapable of taking human behavior into consideration. The Repubicans would have us believe that Reagan and their godlike adoration of idol worship defied all limitations of human capability and must have had a tutor educate Reagan with his incapacitated mind and/or Reagan went to night school to learn calculus so that he fully understood econometrics, truly a miracle, I proclaim. And USAn’s wonder why the Reaganomics model resulted in a economic depression.
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