Tax Cuts and the Republicans’ Reagan Generation
As Democrats and Republicans debate tax cuts yet again, this policy paper provides a bit of historical perspective. “The Reagan tax cut of 1981 remains the largest tax cut in U.S. history, but its significance is more political than fiscal,” writes the author. She goes on to outline the tradeoffs between taxes and spending that occur when one or the other is augmented and how voter preferences change as each is highlighted in political messages.
