Oh, dear. You still believe this old canard. I can’t find a good cite right now, but the usual story goes that Reagan cut taxes and government revenues increased by almost a factor of 2 during the decade of the 1980s. Unfortunately, this claim relies on three misunderstandings:
(1) It looks at total revenues, which includes those from payroll taxes, which were raised under Reagan. In fact, the revenues from payroll taxes increased more than a factor of 2 and those from income taxes by less than that.
(2) It doesn’t correct for inflation. Even 7% inflation over 10 years will double the cost of living. In the 80’s, inflation wasn’t quite 7% but it was high enough to account for the lion’s share of the increase.
(3) It doesn’t bother to compare with other times. In general over time, our society has gotten richer, i.e., our GDP per capita has grown, and our population has grown too. So, increasing government revenues has been the rule. Once you correct for inflation, I believe the number you get for the 1980s is an increase in personal income tax revenues in real terms of something like 15-20%, depending on exactly what years you use (e.g., 1980 to 1990 or 1981 to 1991). By contrast, during the 1990s these revenues went up by something like 70% in real terms. In the 1970s, the growth was somewhere in between.
So, in fact, the conclusion one draws is that Reagan cut income taxes and, as a result, revenue growth for the next decade was anemic compared to other decades. In fact, what happened is that for several years, the income tax revenues in real terms were below the 1981 levels…I believe it took til like '86 for them to climb above again. We are repeating such a revenue dip now under the Bush tax cuts, although I think the dip is probably even more dramatic.
Because it is very convenient to only want to pay for those government services that you use and not for those you don’t. And, it is particularly convenient when you label all those services you don’t use as services that government should not provide. (How about services that I wish to do without? Personally, I don’t want to be paying for the Iraq war since I think it was foolhardy.)