Progressives often chide us and claim, even though the evidence proves otherwise, that the notion that lower tax rates will lead consumers to work more and businesses to expand, resulting in higher tax revenues and eventually closing the budget gap is, to quote Bush I, "voodoo economics" and that Reagan ran deficits because tax revenues decreased after the tax cuts in the 1980's.
That is an assertion without a foundation.
Revenues exceeded that 1980 level in eight of the next 10 years. Annual revenues over the next decade averaged $102 billion above their 1980 level.
Total receipts increased 76.05% from 1981 to 1991.
1980:
Revenue: $517.1 billion
Non-Defence Spending: $287.5 billion
Defence: $303.4 billion
Total Spending: $590.9 billion
GDP: $2.7881 trillion
Deficit: $73.8 billion
Revenue-to-GDP: 18.547%
Spending-to-GDP: 21.19%
Deficit-to-GDP: 2.65%
National Debt: $907.7 billion
Debt-to-GDP: 32.56%
1981:
Revenue: $599.3 billion
Non-Defence Spending: $360.8 billion
Defence: $317.4 billion
Total Spending: $678.2 billion
GDP: $3.1268 trillion
Deficit: $78.9 billion
Revenue-to-GDP: 19.167%
Spending-to-GDP: 21.69%
Deficit-to-GDP: 2.52%
National Debt: $997.9 billion
Debt-to-GDP: 31.91%
1982:
Revenue: $617.8 billion
Non-Defence Spending: $406.3 billion
Defence: $339.4 billion
Total Spending: $745.7 billion
GDP: $3.2532 trillion
Deficit: $127.9 billion
Revenue-to-GDP: 18.99%
Spending-to-GDP: 22.92%
Deficit-to-GDP: 3.93%
National Debt: $1.142 trillion dollars
Debt-to-GDP: 35.1%
1983:
Revenue: $600.6 billion
Non-Defence Spending: $379.0 billion
Defence: $366.7 billion
Total Spending: $808.4 billion
GDP: $3.5346 trillion
Deficit: $207.8 billion
Revenue-to-GDP: 16.99%
Spending-to-GDP: 22.87%
Deficit-to-GDP: 5.88%
National Debt: $1.3772 trillion
Debt-to-GDP: 38.96%
1984:
Revenue: $666.4 billion
Non-Defence Spending: $470.1 billion
Defence: $381.7 billion
Total Spending: $851.8 billion
GDP: $3.9309 trillion
Deficit: $185.4 billion
Revenue-to-GDP: 16.95%
Spending-to-GDP: 21.67%
Deficit-to-GDP: 4.71%
National Debt: $1.5772 trillion
Debt-to-GDP: 40.12%
1985:
Revenue: $734 billion
Non-Defence Spending: $564.6 billion
Defence: $381.7 billion
Total Spending: $946.3 billion
GDP: $4.2175 trillion
Deficit: $212.3 billion
Revenue-to-GDP: 17.40%
Spending-to-GDP: 22.44%
Deficit-to-GDP: 5.03%
National Debt: $1.8231 trillion
Debt-to-GDP: 43.23%
1986:
Revenue: $769.2 billion
Non-Defence Spending: $563.8 billion
Defence: $426.6 billion
Total Spending: $990.4 billion
GDP: $4.4601 trillion
Deficit: $221.2 billion
Revenue-to-GDP: 17.25%
Spending-to-GDP: 22.21%
Deficit-to-GDP: 4.96%
National Debt: $2.1253 trillion
Debt-to-GDP: 47.65%
1987:
Revenue: $854.3 billion
Non-Defence Spending: $576.1 billion
Defence: $427.9 billion
Total Spending: $1.004 trillion
GDP: $4.7364 trillion
Deficit: $149.7 billion
Revenue-to-GDP: 18.04%
Spending-to-GDP: 21.98%
Deficit-to-GDP: 3.16%
National Debt: $2.3502 trillion
Debt-to-GDP: 49.62%
1988:
Revenue: $909.2 billion
Non-Defence Spending: $638.0 billion
Defence: $426.4 billion
Total Spending: $1.0644 trillion
GDP: $5.1004 trillion
Deficit: $155.2 billion
Revenue-to-GDP: 17.83%
Spending-to-GDP: 20.87%
Deficit-to-GDP: 3.04%
National Debt: $2.6023 trillion
Debt-to-GDP: 51.02%
1989:
Revenue: $991.2 billion
Non-Defence Spending: $716.0 billion
Defence: $427.7 billion
Total Spending: $1.1437 trillion
GDP: $5.4821 trillion
Deficit: $152.6 billion
Revenue-to-GDP: 18.08%
Spending-to-GDP: 20.86%
Deficit-to-GDP: 2.78%
Debt: $2.8574
Debt-to-GDP: 52.12%
1990:
Revenue: $1.032 trillion
Non-Defence Spending: $843.3 billion
Defence: $409.7 billion
Total Spending: $1.2530 trillion
GDP: $5.8005 trillion
Deficit: $221.0 billion
Revenue-to-GDP: 17.79%
Spending-to-GDP: 21.6%
Deficit-to-GDP: 3.81%
National Debt: $3.2333 trillion
Debt-to-GDP: 55.74%
1991:
Revenue: $1.055 trillion
Non-Defence Spending: $9.724 billion
Defence: $351.8 billion
Total Spending: $1.3242 trillion
GDP: $5.9921 trillion
Deficit: $269.2 billion
Revenue-to-GDP: 17.61%
Spending-to-GDP: 22.10%
Deficit-to-GDP: 4.49%
National Debt: $3.6653 trillion
Debt-to-GDP: 61.17%
1992:
Revenue: $1.0912 trillion
Non-Defence Spending: $974.7 billion
Defence: $349.5 billion
Total Spending: $1.32432 trillion
GDP: $6.342 trillion
Deficit: $290.3 billion
Revenue-to-GDP: 31.22%
Spending-to-GDP: 20.88%
Deficit-to-GDP: 4.57%
Deficit-to-GDP: 4.57%
Debt: $2.857 trillion
Debt-to-GDP: 52.13%
http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo4.htm
Median family income in America between 1980 and 2004 grew by 17 percent. The middle class (defined as those between the 40th and the 60th percentiles of income) isn’t falling behind or “disappearing.” It is getting richer. The lower income bound for the middle class has risen by about $12,000 (after inflation) since 1967. The upper income bound for the middle class is now roughly $68,000—some $23,000 higher than in 1967. Thus, a family in the 60th percentile has 50 percent more buying power than 30 years ago. To paraphrase John F. Kennedy, this has been a “rising tide” expansion, with most (though not all) boats lifted.
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