Lessons from Reagan: How tax reform can boost economic growth

Chairman Brady, Vice Chair Klobuchar, and Members of the Committee, thank you for inviting me to discuss the issue of tax reform with you today. In the testimony that follows, I will discuss the success of previous tax reforms, problems with the tax code today, and which tax policies could be used to promote economic growth.

In 1982, Ronald Reagan presided over a devastated economy. The unemployment rate hit 10.8%. Reagan advocated a firm prescription for our nation’s economic woes. In his first inaugural address, he said to the nation that, “It is time to reawaken this industrial giant, to get government back within its means, and to lighten our punitive tax burden. And these will be our first priorities, and on these principles, there will be no compromise.” When the US officially entered recession in July 1981, the President was prepared.

Click here to read the full testimony as a PDF.

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