Some of President Joe Biden’s advisers are urging him to look to former President Ronald Reagan’s model of tax cuts to boost the economy, reports The Washington Examiner.
Reagan during his first year of presidency in 1981 lowered federal tax rates for every income group. The top rate fell from 70 percent to 50 percent and reduced federal revenues by about 9 percent, according to the Brookings Institute.
Alfredo Ortiz, the president and CEO of the Job Creators Network, told the Examiner “there could not be a more stark contrast between the positive impact (Reagan’ taxes) had on the economy of the time and the war on small business that President Biden and Democrats are currently waging.
“When President Reagan signed the Economic Recovery Tax Act, the largest tax cuts in history at the time, it empowered businesses to lift the economy out of the stagflation of the 1970s. President Biden should remember this. He was in the Senate at the time,” he said.
“At his Inaugural Address, Reagan famously said, ‘Putting America back to work means putting all Americans back to work. Ending inflation means freeing all Americans from the terror of runaway living costs,’” said Ortiz, adding, “So far, Biden has created a labor shortage that is crippling small businesses and caused historic inflation that's exceeded wage growth, resulting in a ‘Biden pay cut’ for workers.”
Heritage Action Executive Director Jessica Anderson said Americans nationwide “should celebrate the 40th anniversary of President Reagan’s historic tax cuts and the prosperity they unleashed for American families.
“But the anniversary is also a wake-up call: President Biden is currently working to destroy that prosperity with historic tax increases,” she said.
Trump economic adviser Stephen Moore said Reagan’s plan had “staying power.”
“While federal income-tax rates have ranged between 30% and 40% since Reagan left office,” he said.
“This is nowhere near what income taxes were in the 50 years before he took office. In that time, the top tax rate never dropped below 63%.”
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