Note that Reagan's Tax increases were largely by making it tougher to evade taxes
That sounds quite familiar to current GOP plans.
"Reagan was certainly a tax cutter legislatively, emotionally and ideologically. But for a variety of political reasons, it was hard for him to ignore the cost of his tax cuts," said tax historian Joseph Thorndike.
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.
For instance, more asset sales became taxable and tax-advantaged contributions and benefits under pension plans were further limited.
There were other notable tax increases under Reagan.
In 1983, for example, he signed off on Social Security reform legislation that, among other things, accelerated an increase in the payroll tax rate, required that higher-income beneficiaries pay income tax on part of their benefits, and required the self-employed to pay the full payroll tax rate, rather than just the portion normally paid by employees.
The tax reform of 1986, meanwhile, wasn't designed to increase federal tax revenue. But that didn't mean that no one's taxes went up. Because the reform bill eliminated or reduced many tax breaks and shelters, high-income tax filers who previously paid little ended up with bigger tax bills.
Well ID, you should be in full support of President Obama on this one, but then you'd be supporting a 'socialist'...
Jan 26, 2011
Obama: Lower corporate tax rates, close loopholes
President Barack Obama delivers his State of the Union address
on Capitol Hill in Washington, Tuesday, Jan. 25, 2011.
WASHINGTON (AP) President Obama said in his State of the Union address that he wants to close corporate tax loopholes and use the additional revenue to lower corporate tax rates for the first time in 25 years - without adding to the budget deficit.
AP
BTW, So much for Republicans protecting small businesses, the engine of job creation. The self-employment tax under Reagan jumped as much as 66 percent.
Reagan: The great American Socialist realized he needed new revenues to trim the deficit, bring down interest rates and improve his chances for reelection. He would not rescind the income tax cut, but other taxes were acceptable.
In 1982, taxes were raised on gasoline and cigarettes, but the deficit hardly budged. In 1983, the president signed the biggest tax rise on payrolls, promising to create a surplus in the Social Security system, while knowing all along that the new revenue would be used to finance the deficit.
The retirement system was looted from the first day the Social Security surplus came into being, because the legislation itself gave the president a free hand to spend the surplus in any way he liked.
Thus began a massive transfer of wealth from the poor and the middle class, especially the self-employed small businessman, to the wealthy.
The self-employment tax jumped as much as 66 percent.
In 1986, Reagan slashed the top tax rate further. His redistributionist obsession led to a perversity in the law. The wealthiest faced a 28 percent tax rate, while those with lower incomes faced a 33 percent rate; in addition, the bottom rate climbed from 11 percent to 15 percent.
For the first time in history, the top rate fell and the bottom rate rose simultaneously. Even unemployment compensation was not spared. The jobless had to pay income tax on their benefits.
A year later, the man who would not spare unemployment compensation from taxation called for a cut in the capital gains tax.
Thus, Reagan was a staunch socialist, totally committed to his cause of wealth redistribution towards the affluent.How much wealth transfer has occurred through Reagan’s policies? At least $3 trillion.