“My hope, as I made clear, was that he would listen to Republican
s and hear firsthand why we think raising taxes in a weak economy is a bad idea and what the realities are over here," McConnell said on the Senate floor.
And when Reagan raised taxes in 1982?:
-After all, in 1982, the Reagan administra
tion implemente
d the first of several tax increases that it would endorse in order to reduce the deficit. (Reagan raised taxes in seven of the eight years that he was President.
) Republican lawmakers and conservati
ve economists screamed that the tax increase would slam the economy and hinder growth. But as former Reagan and George H.W. Bush economic official Bruce Bartlett noted, “It would be hard to find an economic forecast that was more wrong in every respect“:
Looking at real gross domestic product, it grew 4.5 percent in 1983 and 7.2 percent in 1984 – an exceptiona
lly strong performanc
e. The stock market had one of its best years ever in 1983 – both the Dow Jones Industrial Average and the S&P 500 Index rose 35 percent. There was no increase in the rate of inflation, which was exactly the same in 1983 and 1984 as it was in 1982. The unemployme
nt rate fell from 10.6 percent in December 1982 to 8.1 percent by December 1983 and 7.1 percent in December 1984.-
http://thinkprogress.org/economy/2011/06/24/253569/reagan-1982-flashback-economy-boomed/Read the Article at HuffingtonPost
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