GOP Tax Policy Shifts Burden to Working and Middle Class Americans

Discussion in 'Politics' started by Dogger, Apr 26, 2008.

  1. Dogger
    Offline

    Dogger Active Member

    Joined:
    Apr 16, 2008
    Messages:
    979
    Thanks Received:
    58
    Trophy Points:
    28
    Location:
    Dixie
    Ratings:
    +58
    We've all heard the Republican myth about Ronald Reagan's tax cuts. I call it a myth, because it omits the fact that Reagan signed many tax hikes after his initial cut. Indeed, the many increases that followed his initial cut operated to shift the tax burden from the wealthy to the middle class and working poor.

    Reagan's initial tax cuts were top-loaded, to give the bulk of the benefits to the wealthiest. His biggest cut, reducing the top bracket by 29%, affected only the wealthiest Americans. Everyone else got much smaller reductions. When the deficit began to get out of control, however, Reagan signed several hikes.

    The subsequent hikes were more evenly distributed across brackets, except for the Payroll Tax increases which hit lower brackets harder and did not touch the top brackets at all. The massive cuts in the top brackets remained in place, and were reduced even further post-Reagan.

    Here is the truth, from a conservative publication no less: Reagan raised taxes every year except his first and his last.

    "In 1982 alone, [Reagan] signed into law not one but two major tax increases. The Tax Equity and Fiscal Responsibility Act (TEFRA) raised taxes by $37.5 billion per year and the Highway Revenue Act raised the gasoline tax by another $3.3 billion."

    "According to a recent Treasury Department study, TEFRA alone raised taxes by almost 1 percent of the gross domestic product, making it the largest peacetime tax increase in American history. An increase of similar magnitude today would raise more than $100 billion per year." [emphasis added]

    Other increases:
    • 1983: Reagan raised the Social Security tax rate, a tax increase that lives with us still, so that those with moderately high earnings see their payroll taxes rise every single year.
    • 1984: Reagan signed another big tax increase in the Deficit Reduction Act.
    • 1985: Consolidated Omnibus Budget Reconciliation Act of 1985 raised taxes yet again.
    • 1986: Tax Reform Act of 1986, which was designed to be revenue-neutral, contained a net tax increase in its first 2 years.
    • 1987: Omnibus Budget Reconciliation Act of 1987 raised taxes still more!
    • 1988: Alzheimer's sets in; Reagan forgets to raise taxes!
    The article establishes:

    “The year 1988 appears to be the only year of the Reagan presidency, other than the first, in which taxes were not raised legislatively. Of course, previous tax increases remained in effect. According to a table in the 1990 budget, the net effect of all these tax increases was to raise taxes by $164 billion in 1992, or 2.6 percent of GDP. This is equivalent to almost $300 billion in today's economy.”

    The Conservative National Review: The Real Reagan Record!
     
  2. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,718
    Thanks Received:
    11,047
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,044
  3. Care4all
    Offline

    Care4all Warrior Princess Supporting Member

    Joined:
    Mar 24, 2007
    Messages:
    32,733
    Thanks Received:
    6,614
    Trophy Points:
    1,170
    Location:
    Maine
    Ratings:
    +11,063
    It is being hidden....our taxes haven't gone up yet, but the middle and lower classes are funding federal spending with very little help from the upper class by Congress using our social security surplus funds for what Irs revenues should be paying.

    When we who have had to pay take major cuts in the future to ss because the feds can't afford to pay us back is where the middle and the lower class will end up paying even more in taxes or get less back then they were promised after paying in to...rather over paying in to social security nearly 45 years by the time they collect.

    care
     
  4. Dogger
    Offline

    Dogger Active Member

    Joined:
    Apr 16, 2008
    Messages:
    979
    Thanks Received:
    58
    Trophy Points:
    28
    Location:
    Dixie
    Ratings:
    +58
    That chart has been explained here: Don't believe what you see

     
  5. Gunny
    Offline

    Gunny Gold Member

    Joined:
    Dec 27, 2004
    Messages:
    44,689
    Thanks Received:
    6,753
    Trophy Points:
    198
    Location:
    The Republic of Texas
    Ratings:
    +6,770
    Interesting. Clinton had 8 years to change that. All these little factoids are interesting but the fact is, when Reagan was President, I had more money in my pocket and it bought more than at any time since.

    One of these days you partisan types are going to see (maybe) that when it comes to money, those professional bureaucrats in DC are thick as thieves, no one more guilty than the other. They want to keep their seats and the wealthy can spread some coin around and make that happen ... providing they vote right on the right issues.
     
  6. Dogger
    Offline

    Dogger Active Member

    Joined:
    Apr 16, 2008
    Messages:
    979
    Thanks Received:
    58
    Trophy Points:
    28
    Location:
    Dixie
    Ratings:
    +58
    That is so nice for you. If you were the only person in the country, that would be a legitimate basis for setting national policy.

    Whatever benefit you enjoyed under Reagan was not sustainable. You could have achieved the same thing by running up your credit card and not paying the bill.
     
  7. Alpha1
    Offline

    Alpha1 NAVY

    Joined:
    Jun 3, 2007
    Messages:
    1,719
    Thanks Received:
    193
    Trophy Points:
    48
    Ratings:
    +193
    What charts?

    Who you gonna believe? Me or your lyin' eyes.....:rofl:

    Trouble is, we are learned long ago....liars can figure...but figures don't lie....

    Rupubs cut taxes, Dims raise 'em.....and that the FACT of the matter...
     
  8. Dogger
    Offline

    Dogger Active Member

    Joined:
    Apr 16, 2008
    Messages:
    979
    Thanks Received:
    58
    Trophy Points:
    28
    Location:
    Dixie
    Ratings:
    +58
    The deficit is a tax levied on future generations, for things we consume today. Borrowing is sustainable for capital improvements (similar to taking a mortgage on your house to pay for it), but disastrous for ongoing expenses (like tapping home equity to buy gas and groceries).

    Add the deficit to the analysis, and it's clear: Republicans raise taxes on your kids and leave them nothing to show for it, while Democrats pay the bills. Which would you rather have as your parent?
     
  9. Care4all
    Offline

    Care4all Warrior Princess Supporting Member

    Joined:
    Mar 24, 2007
    Messages:
    32,733
    Thanks Received:
    6,614
    Trophy Points:
    1,170
    Location:
    Maine
    Ratings:
    +11,063
    hmmmmmm, that sure is a different story for my husband and me....at that time.

    when reagan was president we bought our first house and the best interest rate on the mortgage we could get was 13.5%, which mortgaged strapped us...things were not pretty for the working, up and coming, middle class....at least not where i was living....? my taxes went up, with the increased social security tax put on both my husband and me....

    i guess we were at different stages in our lives? mine was not great under reagan, that i do remember!

    care
     
  10. jreeves
    Offline

    jreeves Senior Member

    Joined:
    Feb 12, 2008
    Messages:
    6,588
    Thanks Received:
    315
    Trophy Points:
    48
    Ratings:
    +315
    You don't suppose that the deficit is caused by the highest expenditure in the federal government, entitlement spending and welfare spending?
     

Share This Page