Sunday, August 19, 2007

25 Year Anniversary of the Economic Recovery Tax Act of 1981


Senator George Allen has a great column over at about the 25th anniversary of the Reagan "Economic Recovery Tax Act of 1981"...

"Tax relief revitalized an America that at the time was measuring its status by a “Misery Index,” calculating the combined rates of inflation, interest, and unemployment. The general “malaise” that was the Carter Administration was replaced by President Reagan’s optimism. Census Bureau statistics bear out the benefits of President Reagan’s tax relief, Americans prospered and their lives improved with lower inflation (from 13.5% in 1980 to 4.1% in 1988); lower interest rates (from 18% on a 30 year fixed mortgage in 1981 to 8% in 1987); and outstanding job growth (unemployment had peaked at near 10% in the recession of 1981-1982 and dropped to 5.5% in 1989 once the whole 25% tax cut took effect). The American people kept more of what they earned, saw investments increased, and in the process, enjoyed the creation of 17 million new jobs."

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