Tax cuts do improve the economy
Do not believe Democrats when they say President Reagan’s tax cuts were a failure. He presided over the biggest economic recovery in our lifetime. His tax-rate reductions increased tax revenues from $500 billion to $1 trillion by the end of 1980s.
The following occurred resulting from Reagan’s tax cuts:
▪ 20 million new jobs were created.
▪ Inflation dropped from 13.5 percent in 1980 to 4.1 percent by 1988.
▪ Unemployment fell from 7.6 percent to 5.5 percent.
▪ Net worth of families earning between $20,000 and $50,000 annually grew by 27 percent.
▪ Real gross national product rose 26 percent.
▪ The prime interest rate reduced from 21.5 percent in January 1981 to 10 percent in August 1988.
▪ The tax cuts saved median-income, two earner families of four $9,000 in taxes.
Would you consider the foregoing a failure?
The reduction of taxes were also effected by Presidents Kennedy and Clinton to stimulate the economy, resulting in favorable results. Most economists know that high tax rates discourage work, investment and growth, and result in stagflation which occurred in President Obama’s eight years.
The Democrats love to raise taxes and spend our money like it was their inheritance. For Obama’s eight years in office, he increased our deficit by almost $10 trillion, more than all of our previous presidents combined (from President George Washington to President George W. Bush). In his first year alone, he spent $1 trillion gambling on bankrupt energy companies and bailing out unions.
The thought of a Trump tax cut improved our economy, generated jobs and energized the stock market.
Lee Sgroi
Bluffton
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This story was originally published December 3, 2017 at 6:00 AM with the headline "Tax cuts do improve the economy."