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Tax revenues are up 59 percent since 1980. Because of our economic growth? No. During Carter's four years, we had growth of 37.2 percent; Reagan's five years have given us 30.7 percent. The new revenues are due to four giant Republican tax increases since 1981. All republicans rightly chastised Carter for his $38 billion deficit. But they ignore or even defend deficits of $220 billion, as government spending has grown 10.4 percent per year since Reagan took office, while the federal payroll has zoomed by a quarter of a million bureaucrats... big government has been legitimized in a way the Democrats never could have accomplished. It was tragic to listen to Ronald Reagan on the 1986 campaign trail bragging about his high spending on farm subsidies, welfare, warfare, etc... the IRS has grown bigger, richer, more powerful, and more arrogant. In the words of the founders of our country, our government has 'sent hither swarms' of tax gatherers 'to harass our people and eat out their substance.' His officers jailed the innocent George Hansen, with the President refusing to pardon a great American whose only crime was to defend the Constitution. Reagan's new tax 'reform' gives even more power to the IRS. Far from making taxes fairer or simpler, it deceitfully raises more revenue for the government to waste... I want to totally disassociate myself from the policies that have given us unprecedented deficits, massive monetary inflation, indiscriminate military spending, an irrational and unconstitutional foreign policy, zooming foreign aid, the exaltation of international banking, and the attack on our personal liberties and privacy.

Ron Paul#52

PoliticsEconomyGovernment sizeTaxes

About this quote

What does it mean?
Paul Paul argues that rising tax revenues are due to Republican tax increases and expanding government spending, not economic growth.
In plain terms
Tax revenue growth comes from higher taxes and bigger government, not a stronger economy.
What can you take from it?
Beware of blaming deficits on the other party while ignoring spending growth.

Where it applies

  • budget debates
  • policy analysis

Putting it to work

  • evaluate tax proposals
  • track government spending

Questions to consider

  • What evidence supports the link between tax increases and revenue?
  • How does spending affect deficits?

Another view

The claim mixes data without accounting for inflation or economic cycles.

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