The 1981 Tax Cut After 30 Years: What Happened to Revenues?

Abstract:     

In this article, the author reviews the continuing controversy over the Reagan tax cut. Republicans often assert that it was so expansionary that there was no revenue loss, something the Reagan administration itself never claimed. The truth is that the tax cut lost a lot of revenue, but helped the economy transition from high inflation to low inflation at an unexpectedly low economic cost.

Number of Pages in PDF File: 3

Keywords: Ronald Reagan, Economic Recovery Tax Act, ERTA, Daniel Patrick Moynihan

JEL Classification: H20, H60, K34