Taking a page out of President Reagan’s economic playbook, President Trump is about to repeat history with a massive tax cut for the American people.

Ironically the political similarities are almost identical; then President Reagan was faced with double-digit inflation when he took office from a hapless Jimmy Carter.

When President Trump came into office the mandates and punitive regulations by the Obama Administration combined with a job-killing health care law, had completely eroded the growth rate of millions of small businesses across the country.

Reagan’s plan in 1981 of an across-the-board 25% reduction in tax rates was dubbed the Economic Recovery Tax Act which included indexing tax rates for inflation. The prosperity of the 1980s saw a growth rate of better than 6%. Moreover, it proved the “Gipper” correct in that lowering taxes across-the-board stimulates the economy and actually increases government revenues.

Now President Trump is on the verge of achieving the exact same results for the American people as his predecessor did in the 1980s.

Promising a “giant tax cut for Christmas” in a speech that the White House billed as the president’s closing argument for a massive tax overhaul that congressional Republicans finally finished negotiating on Wednesday.

Which allowed the president to go before the American people in a televised speech stating: “When I say giant, I mean giant, as we speak, Congress has reached an agreement on tax legislation that will deliver more jobs, higher wages and massive tax relief for American families and for American companies.”

The president reiterated his claim stating: “a “typical” family of four earning $75,000 would see a tax cut of more than $2,000 under the legislation, “slashing their tax bill in half.”

He continued: “It’s critically important for Congress to quickly pass these historic tax cuts. If Congress sends me a bill before Christmas -- this is breaking news -- the IRS has just confirmed that Americans will see lower taxes and bigger paychecks beginning in February.”

Somewhere, somehow the “Gipper” is looking down and smiling at how history repeats itself.

Do you believe massive tax cuts across-the-board, actually increase government revenues?

 
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