HOW DID THE REAGAN TAX CUTS AFFECT THE U.S. TREASURY?

Many critics of reducing taxes claim that the Reagan tax cuts drained the U.S. Treasury. The reality is that federal revenues increased significantly between 1980 and 1990:

• Total federal revenues doubled from just over $517 billion in 1980 to more than $1 trillion in 1990. In constant inflation-adjusted dollars, this was a 28 percent increase in revenue.³
• As a percentage of the gross domestic product (GDP), federal revenues declined only slightly from 18.9 percent in 1980 to 18 percent in 1990.⁴
• Revenues from individual income taxes climbed from just over $244 billion in 1980 to nearly $467 billion in 1990.⁵ In inflation-adjusted dollars, this amounts to a 25 percent increase.

HOW DID REAGAN’S POLICIES AFFECT FEDERAL SPENDING?

Although critics continue to focus on President Reagan’s budget “cuts,” federal spending rose significantly during the 1980s:

• Federal spending more than doubled, growing from almost $591 billion in 1980 to $1.25 trillion in 1990. In constant inflation-adjusted dollars, this was an increase of 35.8 percent.⁶
• As a percentage of GDP, federal expenditures grew slightly from 21.6 percent in 1980 to 21.8 percent in 1990.⁷
• Contrary to popular myth, while inflation-adjusted defense spending increased by 50 percent between 1980 and 1989, it was curtailed when the Cold War ended and fell by 15 percent between 1989 and 1993. However, means-tested entitlements, which do not include Social Security or Medicare, rose by over 102 percent between 1980 and 1993, and they have continued climbing ever since.⁸
• Total spending on all national security programs never equaled domestic spending, even when Social Security, Medicare, and net interest are excluded from domestic totals. In addition, national security spending fell during the Administration of the senior President Bush, while domestic spending increased in both mandatory and discretionary accounts.9
• 1981 Frank Sinatra’s song for Reagan.

President Ronald Reagan’s 100th birthday anniversary

Former first lady Nancy Reagan watches the casket bearing former president Ronald Reagan be placed on a caisson on Constitution Avenue near the White House. The funeral procession led to the Capitol where he would lie in state. Reagan died June 5, 2004, at the age of 93 after a decade-long battle with Alzheimer’s disease.

President Reagan greeting Walter Cronkite for an interview in the Diplomatic Reception room. 3/3/81.

President Reagan and Nancy Reagan attending “All Star Tribute to Dutch Reagan” at NBC Studios(from left to right sitting) Colleen Reagan, Neil Reagan, Maureen Reagan, President, Nancy Reagan, Dennis Revell. (From left to right standing) Emmanuel Lewis, Charlton Heston, Ben Vereen, Monty Hall, Frank Sinatra, Burt Reynolds, Dean Martin, Eydie Gorme, Vin Scully, Steve Lawrence, last 2 unidentified. Burbank, California 12/1/85.

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Little known facts about our presidents:

1. Thomas Jefferson had a family of plants named after him, Jeffersonia diphylla, which is also known as twin root or rheumatism root.^k
2. Thomas Jefferson wrote “The Life and Morals of Jesus of Nazareth,” which was discovered after his death by his daughter. It argues that Jesus Christ was a great thinker, but that he was devoid of other worldly qualities that made him the center of Christianity.^k
3. James Madison (1751-1836) was the shortest president of the United States, standing at only 5’4”. He never weighed more than 100 pounds.^j
4. George Washington made the shortest inauguration speech on record—133 words and less than two minutes long.^b

William Harrison served the shortest term of any president

5. William Henry Harrison (1773-1841) holds the record for the longest inauguration speech in history at 8,578 words long and one hour and 40 minutes. Unfortunately, he gave the speech during bad weather and a month later, he was dead from pneumonia, making his the shortest presidency on record.^j