According to a new History Channel special on Ronald Reagan, the
profound economic recovery of the early '80s can be credited to "
the Reagan tax increases."
The February 9 program contained this odd assertion while highlighting
the President's path to reelection in 1984. Of course, the
Economic Recovery Act of 1981 actually cut the top marginal rate from 70 percent to 50 percent.
Despite this, narrator David Jeremiah asserted, "By 1984, Ronald Reagan
is cruising toward re-election. After enduring a recession that
threatened his hopes for a second term, the economy, thanks in part to
the Reagan tax increases, is bouncing back."
The Kemp-Roth tax cuts of 1981 were mentioned earlier in the special
with Jeremiah observing, "The measures include huge tax cuts and vastly
increased military spending."
It's true that Reagan did sign the Tax Equity and Fiscal Responsibility Act of 1982 (
TEFRA),
removing some elements of the previous years legislation. It also
increased some taxes as an attempt to cut the deficit. But it did not
increase the marginal rates (which ultimately dropped to 28 percent).
In an otherwise fair program, the History Channel's crediting of "tax
increases" for the recovery is a rather odd interpretation of history.
A transcript of the February 9 show's relevant sections can be found below:
10:09pm
RONALD REAGAN: We have much greatness before us. We can restore our
economic strength and build opportunities like none we've ever had
before. All we need to begin with is a dream that we can do better than
before. All we need to have is faith, and that dream will come true. All
we need to do is act, and the time for action is now. Thank you and
good night.
NARRATOR DAVID JEREMIAH: The public response to Reagan is immediate and
overwhelmingly positive. Congress is compelled to pass Reagan's
economic agenda, legislation that had been stalled before the
assassination attempt. The measures include huge tax cuts and vastly
increased military spending.
10:24
REAGAN AD: It's morning again in America. And under the leadership of
president Reagan, our country is prouder and stronger and better. Why
would we ever want to return to where we were less than 4 short years
ago?
NARRATOR: By 1984, Ronald Reagan is cruising toward re-election. After
enduring a recession that threatened his hopes for a second term, the
economy, thanks in part to the Reagan tax increases, is bouncing back.
- Scott Whitlock is a news analyst for the Media Research Center. Click here to follow him on Twitter.
