That’s just not true. Reagan wanted to cut all sorts of government programs and services. He wanted to dismantle the Department of Education. He cut top marginal rates to 28%, and eventually raised them back to 31%, but that was it. He broke up the air traffic controller’s union.
The reason he didn’t do more domestically to shrink government was because he was focused on the cold war and building up the military and confronting the Soviets, and had a pretty full plate. In addition, the economy came roaring back and was quite strong throughout his last term and a half, and that takes the pressure of making changes in the economy.
Also, Reagan had to deal with a Democrat-controlled House of Representatives, and it’s the House that originates spending bills. Therefore, he was quite limited in what he could achieve domestically. In foreign policy the President has a lot more leeway for executive action, and even so he had to bargain away some of his domestic priorities to get congressional support for his foreign policy, which he considered more important at the time.
I’ve read a lot of what Reagan has written, including speeches, interviews, his memoirs, and various biographies. I’ve also read the memoirs of his budget director and other administration officials. He was very much an ideological small government conservative. The people that surrounded him were hard-core small government people. George Shultz was a free-market economist from the Chicago school and a disciple of Milton Friedman’s. David Stockman, his budget director, was a fiscal hawk who wanted much deeper cuts in government.
The biggest criticism of him as a squish on small government came from David Stockman, who said that Reagan was simply too nice when it came down to making the actual cuts. He’d say he wanted deep cuts in government spending, but each time Stockman would come to him with a plan, Reagan would say, “oh, no, we can’t cut THAT. Find me something else to cut.” Stockman felt that Reagan had the intellectual belief in small government, but when it came right down to it he didn’t want anyone to suffer from budget cuts. But other administration officials say it had more to do with Reagan having to cut deals with Democrats, or with his political intuition that the kind of cuts Stockman wanted just weren’t politically feasible.
Reagan had a degree in economics, and his biggest influences were Friedrich Hayek and Milton Friedman. He believed in free trade and free markets.
If Reagan were around today, he would be considered the ‘scary right-wing candidate’.
That said, I do think Reagan would be more willing to entertain modest tax increases if that’s what it took to get a deal to cut the budget. He would be terrified by the current fiscal meltdown of the U.S, even though he ran the deficit up a lot himself.