“He had a Democrat Congress for the most part.”
And that really is why the deficits weren’t controlled.
Reagan’s economic proposal included $2 of spending cuts for every $1 in tax reductions.
Speaker Tip O’Neill agreed to it, and then reneged on the spending cuts. So the deficits not only continued, they grew.
The Reagan team never said that tax receipts would grow enough to cover the rate reductions.
What they did say is that economic growth would recoup a large portion of the receipts “lost” due to rate reductions.
Their projection was that around two thirds of each dollar would be recouped, and that prediction proved to be accurate.
Thanks Pelham. I didn’t remember that part.