And what were those principles, exactly? No. 1according to the resolutionwas smaller government, smaller national debt, lower deficits and lower taxes. Lets take those from the top. Smaller government: Federal employment grew by 61,000 during Reagans presidencyin part because Reagan created a whole new cabinet department, the department of veterans affairs. (Under Bill Clinton, by contrast, federal employment dropped by 373,000). Smaller deficits and debt: Both nearly tripled on Reagans watch. Lower taxes: Although Reagan muscled through a major tax cut in 1981, he followed up by raising taxes in 1982, 1983, 1984 and 1986. In 1983, in fact, he not only raised payroll taxes; he raised them to pay for Social Security and Medicare. Lets put this in language todays tea-baggers can understand: Reagan raised taxes to pay for government-run health care.