Reagan Policies Under Attack

Four years ago today our 40th President, Ronald Reagan, passed away, and as we remember him today, unfortunately many of his central ideas are under attack from both sides of the isle.


Although Barack Obama has Reaganesque qualities with regard to giving a speech and energizing a political base, the similarities abruptly end there. We can begin with taxation.

When the government takes away the incentives to work and save (the raising of taxes), the economy goes flat—millions are thrown out of work and government revenues plunge. ---Ronald Reagan, February 4, 1985

When you tax something you get less of it, and in the process, governmental tax revenue decreases rapidly. Famed economist, and former Reagan staff economist Art Laffer, illustrated it beautifully in his Laffer Curve, shown below:

The supply side economic policies of Ronald Reagan were right on target and continue to be effective today as reducing the tax burden on working Americans fuels prosperity. Don't let the political rhetoric fool you. In the world we live in today, where inflationary risks abound, raising taxes would be a real bear in more ways than one.