What people forget about the Reagan tax cuts are two fold. First, they did not generate the increased revenue hoped for and deficits grew (and yes, I know that spending is an issue in and of itself, but it is worth noting that politicians and the people who put them into office do not have the stomach to seriously cut spending, but that is a different conversation). Second, by the time his presidency was over he had increased taxes through broadening the tax base and closing so called loopholes. Economists on both sides of the aisle, if you want to believe them, support this.
The bigger issue for me is the deficit these tax cuts bring. They will ultimately do more harm than good because deficits matter - and not only do the tax cuts not pay for themselves, they significantly add to the deficit. We can argue the point, as can politicians, but the problem won’t become apparent to the masses for years - at which point those in office will come up with another short-term, feel good fix and kick the can down the road yet again. What’s the answer? I don’t know. I will benefit from the new tax cuts, but I fear the long term effect on the country.
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