Death and Taxes

The Trump tax cut failed to deliver for all but the very rich. And the gop thinks this is the perfect time for more.

- By Kevin Drum

IN 1980 THE federal deficit was soaring and Ronald Reagan campaigned on a singular promise: He planned to cut taxes on everyone, but especially the rich. He insisted that those benefits would quickly trickle down to everyone and supercharge the economy. Throw in some social safety net cuts, Republicans said, and the whole plan would pay for itself.

They were wrong. The rich got lower taxes all right, but the economy flatlined and the deficit skyrocketed. I should know: I graduated from college the same summer the tax cut passed, and I spent the next three years managing a Radio Shack waiting for the economy to get back on its feet. In 1982 Reagan was forced to raise taxes to make up for his cuts, and he continued raising them throughout his presidency.

In 1993 Bill Clinton passed a tax increase to reduce the deficit. Republicans insisted it would do no such thing. In fact, they said, it would cripple the economy.

They were wrong. The economy boomed, and for the first time since the Roaring ’20s, the deficit turned into a surplus for four consecutive years.

In 2001—and again in 2003—George W. Bush passed a tax cut. Once again, Republicans said it would supercharge the economy and pay for itself.

They were wrong. All we got was a jobless recovery and a housing bubble that wrecked the economy. It produced the worst economic downturn since the Great Depression.