PRESIDENT GEORGE W. BUSH Message Board

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Politics : PRESIDENT GEORGE W. BUSH

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To: Steve Dietrich who wrote (347837)	1/25/2003 4:56:48 PM
From: Peter O'Brien	Read Replies (2) of 769670

The source you cite (cbo.gov) shows the revenue in nominal dollars each year. Yes, the nominal annual revenue growth under Carter was higher. But, in case you had forgotten, we were also experiencing double-digit inflation during Carter's term. The inflation rate under Reagan was much lower (typically in the 3-4% range). In the year 1980, the inflation rate was 13.5%. According to your source (cbo.gov), federal revenue increased from $463B in 1979 to $517B in 1980, which is only an 11.7% increase. Thus, real revenue fell during 1980. Also, remember that "bracket creep" due to inflation was not eliminated until Reagan's term. So, effectively, the high inflation rates under Carter were raising everyone's tax rate each year. Despite these phantom tax increases, real revenue still fell during the year 1980.

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