Reagan’s Tax Cutting Legacy

Unleash Prosperity Hotline – Weekend Edition
Issue #348
08/13/2021, 08/14/2021, 08/15/2021
1) Reagan’s Tax Cutting Legacy

Yesterday the Committee to Unleash Prosperity co-hosted an event with the Heritage Foundation celebrating the 40th anniversary of Reagan’s tax cuts. We hope you were able to tune in!

We will post a video of the event as soon as it’s ready, but in the meantime, here is a segment of our co-founders previewing their remarks on Fox Business.  



Arthur Laffer and Steve Moore also penned this piece in the Wall Street Journal on Reagan’s legacy:

https://www.wsj.com/articles/biden-reagan-1981-tax-cuts-capital-gains-reconciliation-bill-supply-side-stagflation-inflation-carter-11628802363?mod=opinion_lead_pos5

Here is an excerpt from the WSJ article:
 


Friday marks the 40th anniversary of Ronald Reagan’s first tax cuts—arguably the most consequential and controversial economic policy paradigm shift of the past half-century. The Reagan supply-side revolution went global. An analysis by the Organization for Economic Cooperation and Development found that the unweighted average top marginal income-tax rate among developed countries fell by a third, from 65% to 43%, after 25 years. Nearly every nation, from China to Costa Rica, imposes lower tax rates today than in the 1970s.

Alas, the U.S. needs to relearn the lessons of the Reagan tax cuts. President Biden has proposed a sweeping tax-policy reversal that would raise many tax rates—such as the capital-gains and death-tax rates—to levels even higher than in the Jimmy Carter years.
2) My Take Home Pay Won’t Take Me Home

Speaking of the 1970s and Jimmy Carter, one of the lessons from stagflation is that nothing increases income inequality more than inflation. 

Last Friday the Biden folks were crowing about 4% wage gains for workers. But then on Tuesday, we learned that inflation is running at 5.4%. So this means workers LOST 1.4 percent purchasing power from their paychecks. 

This was very nicely summarized by Andy Puzder, former Trump economic advisor. His chart below shows the trend in wages v inflation. Inflation is winning the race. No wonder a new Fox News poll shows 80% of Americans are concerned about inflation. 

https://www.realclearpolitics.com/articles/2021/08/12/the_biden_inflation_tax_made_clear_in_one_chart__146231.html

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