Did Reagan REALLY cut taxes or increase them?

[z31maniac]

http://money.cnn.com/2010/09/08/news/economy/reagan_years_taxes/index.htm

"Two bills passed in 1982 and 1984 together"constituted the biggest tax increase ever enacted during peacetime," Thorndike said.

The bills didn't raise more revenue by hiking individual income tax rates though. Instead they did it largely through making it tougher to evade taxes, and through "base broadening" -- that is, reducing various federal tax breaks and closing tax loopholes. "

[z31maniac]

Base broadening and income tax fraud (especially from industries that deal in cash, thus avoid being reported) is a particularly good argument for the "Fair Tax."

Basically it's a tax on consumption vs a tax on income, so all those cash industries now get to pay their fair share as well.

www.fairtax.org if you aren't well read on the topic.

[mrsleeve]

if he raised the taxes why are you and I only paying 28% rather than 50%??????????? Even with closing the loop holes, our federal tax liabilities came down.

it was the dem controlled houses that failed to cut the spending that went with the tax cuts that did things in.

But then you know this

there are tons of good arguments for the flat or fair tax but like we have discussed before that it would basically eliminate the power of the IRS. There by eliminating the govt 's power to punish Individuals, Company's and Industries, that those in power dont like or those that speak out against the govt. IE the current admins hate for the oil and energy sector and its attempts to tax the fuck outta it to make green artificially competitive, And the fact that the state of NY (and the feds as well) Audited Rush for something like 11 years in a row.

[z31maniac]

I get he lowered the tax bracket rates and overall % burdens.

Just thought it was an interesting look at the oft quoted sitaution from 30-22 years ago.

[CorvallisBMW]

www.fairtax.org if you aren't well read on the topic.

This is interesting, I hadn't really heard about it before. At first I thought it referred to the 'flat tax' but that's obliviously something different.

So it's set up like a sales/VAT tax then? Having just seen it I can't claim to be an expert, but it seems like a very viable idea. I like the move towards 1 tax system instead of the dozens and dozens we have now.

How does it go about taxing things that don't cost money to buy though? Such as capital gains, certain services, etc?

[z31maniac]

Investments/savings/etc are not taxed. Basically anything that can be construed as income is not taxed.

It's basically a national sales tax, IIRC, somewhere in the neighborhood of 22-23% + whatever state/local sales taxs. So all in all, you're looking at about a 30% sales tax on purchases with few exemptions.

It sounds crazy to think now you are going to pay $1300 for that $1000 TV, but you only actually pay tax if you decide to buy it.


Guys go at look your last paycheck and let me know if you'd like to keep your "gross" amount and only pay tax when you buy something.

[CorvallisBMW]

Investments/savings/etc are not taxed. Basically anything that can be construed as income is not taxed.

It's basically a national sales tax, IIRC, somewhere in the neighborhood of 22-23% + whatever state/local sales taxs. So all in all, you're looking at about a 30% sales tax on purchases with few exemptions.

It sounds crazy to think now you are going to pay $1300 for that $1000 TV, but you only actually pay tax if you decide to buy it.


Guys go at look your last paycheck and let me know if you'd like to keep your "gross" amount and only pay tax when you buy something.

Makes sense to me. It would rule in OR b/c we don't have sales tax, hence no local taxes to add on :)

But yeah, then my gross pay is $700/check more than my net, that sux :( Though $200 of that is 401K contribution...

[reelop19]

Nothing from CNN is worth reading into. <-------And that was a capital period!

[BraveUlysses]

Didn't you just complain about blanket statements?

This is you: http://en.wikipedia.org/wiki/Confirmation_bias

[ck_taft325is]

Didn't you just complain about blanket statements?

This is you: http://en.wikipedia.org/wiki/Confirmation_bias

Him being stupid is almost as bad as you hounding him on every post about him being stupid.


It DOES sound nuts that a $1,000 TV would run you $1,300, but as you said, only if I buy it. Not to mention I would easily have the $300 extra to spend if I made my gross income. But how does 30% sound on Milk? Think day to day items. That starts to add up a bit. If you spend say, $500 a month to feed your family (Wife, child and yourself) would essentially be $650 at the 30% end of things. Would it just balance out or would you still be bringing home more on a fair tax system than our current?

[E30 Cabrio]

Both.

But ultimately, Reagan lowered taxes, especially corporate taxes which allowed the US to become competitive again in many industries, such as automobiles, computers, software, etc...

Federal tax revenues nearly doubled during the 1980's as a result.

http://www.house.gov/jec/fiscal/tx-grwth/reagtxct/reagtxct.htm

[BraveUlysses]

Him being stupid is almost as bad as you hounding him on every post about him being stupid.

I could say the same about all your posts to Massive Lee. Get over yourself.

[ck_taft325is]

Yeah because that's totally the same. Get rid of your hard on and just move on.

[BraveUlysses]

Yeah because that's totally the same. Get rid of your hard on and just move on.

3 "Why do you look at the speck of sawdust in your brother's eye and pay no attention to the plank in your own eye? 4How can you say to your brother, 'Let me take the speck out of your eye,' when all the time there is a plank in your own eye? 5You hypocrite, first take the plank out of your own eye, and then you will see clearly to remove the speck from your brother's eye.

[CorvallisBMW]

3 "Why do you look at the speck of sawdust in your brother's eye and pay no attention to the plank in your own eye? 4How can you say to your brother, 'Let me take the speck out of your eye,' when all the time there is a plank in your own eye? 5You hypocrite, first take the plank out of your own eye, and then you will see clearly to remove the speck from your brother's eye.