President of the U.S., 1981-1989; Republican Governor (CA)
1985 State of the Union speech: cut taxes; slash spending
After the 12-year siege of Reagan-Bush, I thought the plague of Reaganism had passed. How was I to know that a more virulent strain, personified by Newt Gingrich and the Contract With America, was about to lay us low? It was rolled out, like a big
legislative Trojan horse, just six weeks before the congressional elections. It was fiendishly brilliant; in the end we lost 54 seats.
The guts of that Trojan horse were taken nearly verbatim from Reagan's 1985 State of the Union speech. The core of
that speech, the heart of Reaganism, venerated the new Republican mantra of cutting taxes on wealth and slashing government spending on entitlement programs. "Entitlement" became identified with a newly-revised, all-purpose political scapegoat: the
undeserving poor.
The massive budget cuts in the Gingrich Congress in 1995 were the cutting edge of Reagan's 1985 vision of boosting growth and balancing the budget by cutting regulation on corporations, taxes on the wealthy, and spending on the poor.
1985 Tax Code has unfair loopholes for real estate industry
As I studied Reagan's 1985 budget proposal carefully, I found I agreed with the critics. At a highly charged White House meeting, the president launched into a sales pitch. But I was unmoved. I said, "I don't agree that this is some sort of tax reform.
I just think it's another tax increase. I don't think it's the right thing for the country."
The president's advisers were pushing a series of tax increases on the real estate industry as reform. "We have cut tax rates and capital gains,"
Reagan told me. "And now we have this unfair tax code with loopholes for real estate and industry." (The closing of this so-called loophole would almost crush Houston, Texas. After the bill passed, the real estate market there collapsed.)
In my opinion, the bill wasn't really about real estate at all; it was a manifestation of Reagan's old worries about the deficit. But I put aside my misgivings, cranked up the whip organization and passed it. I still regret it.
25% tax cut early, then overhaul tax system & reduce rates
Early budget cuts of $39 billion were followed by the passage of a 25% tax cut for individual taxpayers and faster tax write-offs for business.
Reagan’s domestic program during his second term focused on tax reform. Late in 1986 the Senate joined
the House to pass a major tax bill that reduced the number of tax rates, removed millions of low-income persons from the tax rolls, and eliminated most deductions.
Source: Grolier Encyclopedia on-line, “The Presidency”
Dec 25, 2000
Serious on tax simplification; mocked as “secret tax plan”
In one State of the Union address, the president announced that he was “asking for a plan of action to simplify the entire tax code so that all taxpayers, big and small, are treated more fairly.” This order was diminished by the qualifier that Reagan
would not deliver “specific recommendations” until December. Democrats erupted in cynical laughter. Since he was totally serious about tax reform, Reagan had not realized that the wording of the announcement would make his commitment seem like a ploy.
Source: The Role of a Lifetime, by Lou Cannon, p. 553-54
Jul 2, 1991
Success should not be penalized by high taxes
Idle industries have cast workers into unemployment and personal indignity. Those who do work are denied a fair return for their labor by a tax system which penalizes successful achievement and keeps us from maintaining full productivity.
Source: Inaugural Speech, Washington D.C.
Jan 20, 1980
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