The Tax Cut that won the Cold War

Being a Cold War history freak, I couldn't possibly pass up the opportunity to share this with you. A fellow named Drew McKissick has posted "The Tax Cut that won the Cold War" on the Wizbang Bomb Squad.

A few weeks ago marked the silver anniversary of one of the most pivotal events in American economic and foreign policy history. It was twenty-five years ago on August 13th that Ronald Reagan signed into law the Kemp/Roth tax cuts, also known as the Economic Recovery Act of 1981—legislation which helped set in motion the events which shaped the world in which we live today.

The bill reduced American income tax rates by approximately one-third across the board, and unleashed the pent up power of an economy besieged by double digit inflation, double digit interest rates and double digit unemployment.

The result was an economy that grew at phenomenal rates, created tens of millions of jobs, raised personal incomes and more than doubled overall revenues to the US Treasury, (something liberals and most economists said couldn’t happen). In addition, investment and entrepreneurship blossomed, helping to foster the technology boom that has impacted just about every aspect of our lives.

It's a wonderful article. Something our kids should learn about in their history books.