Reagan raised taxes
February 03, 2011 11:00 am ET by Simon Maloy
We're approaching Ronald Reagan's 100th birthday, and the conservative movement -- after three years of mocking liberals who supposedly worship "The Obamessiah" -- are readying to prostrate themselves before the altar of the Gipper and offer up rosy, revisionist hosannas to the Alpha and Omega and Republicanism. We have tribute videos from the Heritage Foundation, tribute videos from Fox News, a book from Newt Gingrich, and, of course, fundraising appeals from the Republican National Committee.
Eager to protect the heavily redacted memory of Reagan, conservatives are spitting mad that anyone would dare put Barack Obama on the same plane as the 40th president. There's no comparison, they argue, given that Reagan brought freedom to the world and saved the American economy and Obama is a socialist Marxist communist who everyone hates.
But for all their complaining about Obama's tax-and-spend "big government" policies, the right is ever reluctant to acknowledge a shameful little secret about Reagan -- he raised taxes. Payroll taxes and energy taxes, to be precise. And Reagan's payroll tax increase was enacted to save Social Security, which he also expanded to cover new federal workers.
So as we sit back and enjoy the right's heartfelt paeans to Ronald Reagan, a tax-cutting conservative champion for the ages, don't forget that Reagan raised taxes to preserve and strengthen the keystone program of New Deal liberalism. Facts like that are apt to be overlooked in times like these.
I dunno. I thought Reagan's funeral was handled well. His final days were tragic as hell. I wouldn't wish Alzheimer's on anyone.
Only right-wing delusion continues to argue that liberals are in any way "obsessed" with Obama. Had we a true multi-party democracy, I would wager that Obama would have his hands full with a true progressive candidate in 2012.
But again, Reagan would NOT pass the tea bag test these days.
But again, Reagan would NOT pass the tea bag test these days.
Ever hear Anchor Baby Malkin say that Raygun doubled the social security withholding tax?
Ever hear Insean Vannity say that Raygun raised taxes 7 times?
In 1982 alone, Raygun 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.
In 1983, Raygun signed legislation raising the Social Security tax rate.
This is a tax increase that lives with us still, since it initiated automatic increases in the taxable wage base. As a consequence, those with moderately high earnings see their payroll taxes rise every single year.
In 1984, Raygun signed another big tax increase in the Deficit Reduction Act.
This raised taxes by $18 billion per year or 0.4 percent of GDP. A similar-sized tax increase today would be about $44 billion.
The Consolidated Omnibus Budget Reconciliation Act of 1985 raised taxes yet again.
Even the Tax Reform Act of 1986, which was designed to be revenue-neutral, contained a net tax increase in its first 2 years.
And the Omnibus Budget Reconciliation Act of 1987 raised taxes still more.
The year 1988 appears to be the only year of the Raygun 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.
But, should we really be surprised? We know it's a well established fact that conservatives are best at growing the government and debt.
mmfa has repeatedly defended the plan by using the CBO numbers of about $140B in savings...carefully being sure to include the caveat "If all of its provisions are carried out". Well, the 112th senate has barely warmed their seat cushions and their action yesterday reduced the savings by $22B.
-- The challenge we face is that repealing the section 1099 provision carries a cost of about $22 billion over 10 years. -- Carl Levin, congressional record
Levin introduced an amendment to pay for this repeal by raising taxes on the big bad oil companies. Senate republicans and 7 democrats shot down this amendment.
Stabenow then introduced an amendment...passing with the support of 47 republicans and 34 democrats...to pass the hot potato to Pres. Obama. The amendment requires the president and the OMB to find $22B in savings from already allocated but unspent funds...producing the following roar from Levin:
-- The power of the purse should not be handed to the President, any President...To some this may be a convenient way to relieve Congress of its responsibility to make difficult choices. To others it may be a convenient way to shift the blame for the painful impact of any cuts from Congress onto the President. -- Congressional Record
Where does that leave us? Projected health care reform savings have been reduced by 16%...and senate republicans with the help of 34 democrats have just deposited this dirty diaper on the president's desk.
http://www.rawstory.com/rs/2011/02/repeal-affordable-care-act-defeated-partyline-vote-senate/
ouch
If we really wanted to reduce the deficit, we would have passed socialized medicine, proven by copious examples to cut costs in half.
Quick - get Nancy's astrologist on the phone.
Why do you want politicians to do what you can't even describe? They're in the government; they're not that good.
Are you somehow implying that because Glenn Beck wrote about something, no one else should?
Reagan inherited a 7.2% unemployment from Carter in January 1981. Two years later it was 10.8% (December 1982), an increase of 3.6%. That was the highest unemployment since the Great Depression.
Obama inherited 7.5% unemployment in the middle of a crisis (January 2009), and now (two years later) it is 9.4%. That is an increase in 1.9%.
So the job losses under Reagan's first two years were nearly twice the numbers that Obama had in his first two years.