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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: wonk who wrote (126990)	7/23/2005 9:25:50 AM
From: DMaA	Respond to of 793707

Why SHOULD taxes have been 35% higher? Why would it have been better that the collective controled that wealth and not the people that created it? tax collections never recovered from what they should have been if we hadn’t fiddled with the tax code at all.

To: wonk who wrote (126990)	7/23/2005 1:36:50 PM
From: Ilaine	Respond to of 793707

"Nominal vs. real" means inflation (or deflation). If you paid $1 for goods in 1980, they would cost $1.59 in 1990. Not double. minneapolisfed.org

To: wonk who wrote (126990)	7/31/2005 12:36:45 PM
From: carranza2	Respond to of 793707

So given the sizable tax cuts in the 1981 (there were modest tax increases subsequently and the 1986 tax reform was fairly neutral) simplistically tax collections never recovered from what they should have been if we hadn’t fiddled with the tax code at all. Thank you for an absolutely terrific post. The Laffer folks forget that Reagan, its most visible proponent, raised taxes after he saw what following Laffer did to the budget. But why let the facts get in the way of a good story? Don't worry, be happy....