On October 22, 1986, President Reagan signed the Tax Reform Act of 1986, the centerpiece of his second term domestic agenda. The legislation dramatically lowered the top individual income tax rate from 50% to 28% - the largest single drop in the history of the federal income tax - while reducing the …
Ronald ReaganCorporate lobbyistsSenate Finance CommitteeCongresstax-cutscorporate-lobbyingwealth-transferreaganomicsinequality+1 more
By mid-Reagan presidency, the structural mechanisms of permanent upward wealth redistribution are firmly established: union-busting destroys worker bargaining power, tax policy rewards capital over labor, financial deregulation enables speculation and asset stripping, and weakened antitrust …
Ronald ReaganAmerican workersWealthy eliteCorporate executivestrickle-downinequalityreaganomicseconomic-legacystructural-inequality
The national debt under President Reagan explodes from $997 billion in 1981 to $2.9 trillion by 1989, representing an increase of 186% and adding approximately $1.9 trillion in new debt during his eight-year presidency. Annual budget deficits average 4.0% of GDP during Reagan’s tenure, …
Ronald ReaganCongressOffice of Management and BudgetDepartment of Treasurydeficitnational-debtreaganomicsfiscal-policysupply-side-economics
President Ronald Reagan signs the Economic Recovery Tax Act (ERTA), enacting sweeping tax cuts that disproportionately benefit the wealthy and inaugurate the “supply-side economics” era. The legislation slashes the top marginal tax rate from 70% to 50% and the bottom rate from 14% to …
Ronald ReaganCongressJack KempWilliam Rothtax-cutsreaganomicssupply-side-economicswealth-inequalitytrickle-down+1 more
Income and wealth inequality surge during the Reagan presidency, with the top 1% of earners capturing an increasingly disproportionate share of national income while middle and working-class incomes stagnate. The top 1% income share rises from 9.0% in 1979 to 13.8% by 1986—a 53% increase in less …
Ronald ReaganTop 1% earnersMiddle classWorking classwealth-inequalityincome-inequalityreaganomicsgini-coefficienttax-policy
Empirical evidence systematically disproves Reagan’s supply-side economic theory—the claim that tax cuts for the wealthy would generate economic growth benefiting all Americans through “trickle-down” effects. Statistical analysis reveals the correlation coefficient between top tax …
Ronald ReaganArthur LafferDavid StockmanGreg MankiwCongressional Budget Officesupply-side-economicstrickle-downreaganomicseconomic-theorytax-policy
Real wages for American workers begin a prolonged period of stagnation and decline during the Reagan era, with median hourly wages falling nearly a dollar from $16.90 to $16.00 between 1980-1990. Average real hourly wages for production and nonsupervisory workers—representing the vast majority of …
Ronald ReaganAmerican workersLabor unionsCorporate Americawage-stagnationinequalityreaganomicsworkerslabor+1 more
Reagan’s 1981 tax cuts create massive corporate tax loopholes through permissive depreciation rules and reduced rates, causing corporate tax revenue to plummet from 25% of federal revenue in the 1950s to just 6.2% by 1983. The tax law allows corporations to slash or erase tax obligations …
Ronald ReaganCorporate AmericaInternal Revenue ServiceCongresscorporate-taxestax-avoidanceloopholesreaganomicstax-policy