Isn’t it interesting that the same Arthur (aka Art) Laffer, the former Reagan economic underling, who is now making a splash on FOX PAC interviews crying “TAX CUTS FOR ALL, TAX CUTS FOR ALL!” wrote in June 2004 – for the Heritage Foundation no less – that as a result of the Economic Recovery Tax Act of 1981 (ERTA) and other tax acts (meaning increases) in the 1980s, the top 10% were paying 57.2% of total income taxes by 1988 – up from 48% in 1981 … Why, that looks like a tax increase on the top tax bracket under Ronald Reagan, creating more tax revenue and stimulating the economy … and wow, President Obama has proposed increasing taxes on the top echelon of earners just like Reagan did to create more tax revenue and to help stimulate the economy, and yes Virginia, that would mean not only that there is a Santa Clause, but that the rich would be paying a higher percentage of total income taxes.
Additionally, a report from the Joint Economic Committee in 1996 found that the bottom 50% of earners share dropped from 7.5% to 5.7% from 1981 to 1988, and that the total share of taxes on middle income earners in the 50th to 95th percentile decreased from 57.5% to 48.7% between 1981 and 1988 … now that’s just amazing, the President’s jobs bill would reduce payroll taxes on both workers and employers, extend long-term unemployment benefits and invest in public works and teachers, police officers and other public servants – in effect reducing the tax burden of the lower and middle class, gee, just like Reagan did.
So, just to recap, from 1981 to 1988 we see an increase on taxes during Reagan’s presidency on the upper percent of earners (the top 5% to be exact) aka the fabulously wealthy so-called job creators, while at the same time tax rates were cut for the middle class and lower income classes and the economy grew right along with tax revenues helping the country out of a devastating economy … curse those darned facts!
The Liberty Tree 