But Reagan won and pretty soon all Republicans were supply-siders.
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Then came stagflation, which opened the door for the supply-siders.
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To boost stagnant growth, supply-siders promoted one tax cut after another.
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Supply-siders like myself always buck the trend on pricing out lower tax rates.
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WE – SUPPLY SIDERS HAVE ALWAYS SAID, IF YOU MUST, AT LEAST TARGET THEM SPECIFICALLY.
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For supply siders, the expectation that Trump will sign Paul Ryan's tax and spending bills.
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Inflation was Keynesianism's Achilles' heel, and the supply-siders aimed their arrow right at it.
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Returns to work would rise, appeasing supply-siders who think too little labor is stunting growth.
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Supply-siders argue that lower marginal tax rates give people more incentive to work and invest.
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Yet as supply-siders would say, if action on tax rates has consequences, so, too, does inaction.
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Once Democrats can make that case, they'll be able to turn the tables on the supply-siders.
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Supply-siders contended that well-targeted tax cuts could generate big economic growth even without spending cuts.
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Mr. Bannon's film features predictable interviews with think-tank supply siders and free marketers fretting about big government.
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Supply-siders contended that tax cuts could reduce government debt by stimulating economic growth, even without spending cuts.
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Supply-siders worry that it is creating a growing risk of stagnation, or even a full-blown economic crisis.
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Old and young, men and women, Keynesians and supply-siders, religious and nonreligious — we group ourselves into many categories.
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The research shows that cutting top marginal rates does not produce as much growth as the supply siders expected.
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Trump's plan is the product of unreconstructed supply-siders who believe that large tax cuts solve all our economic problems.
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" The supply-siders "think booms and busts result from changes in tax policy—and only from changes in tax policy.
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Supply-siders like me know these policies only damage the economy, with the middle and lower classes suffering the most.
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But think of previous movements of new ideas, whether on the left or the right: supply siders, say, or New Democrats.
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"The essence of what the supply-siders were trying to accomplish was accomplished by the end of the Reagan administration," Mr. Bartlett said.
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It was a welcomed view among harder-line Reagan Republicans and supply-siders who, up to then, showed little concern for small and minority firms.
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There are plenty of differences between China's supply-siders and those who shaped Mr Reagan's programme, not least in their diagnosis of their respective economies' ills.
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The cure for that, he believes, is a short-term burst of monetary easing, the very thing that ardent supply-siders have been hoping to banish.
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But ardent supply-siders like Laffer claim that the tax rate is the determining factor, which, considering the historical graph above, makes their case even weaker.
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Those conservative supply-siders argued that cutting taxes would lead businesses to invest more, unleashing faster economic growth as the productive capacity of the nation increases.
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Some die-hard Republican supply-siders would gladly abandon Mr. Ryan and simply add the cost of Mr. Trump's enormous tax cut to the federal deficit.
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In a fully-Trumpized G.O.P., Reagan's ideological coalition would crack up, with hawks drifting toward the Democrats, supply-siders fading into crankery, religious conservatives entering semi-permanent exile.
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Committed supply-siders, for example, will argue that long-term growth will more than make up for any shortfalls, but most Republicans don't truly fit into that bucket.
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To an American, this rhetoric and these justifications will sound like a rehash of the Kemp-Roth tax cuts, Reaganomics, and the long reign of the supply-siders.
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This is doubly ironic, and doubly depressing, once you recognize that the sort of big redistributive state supply-siders fight is not necessarily the enemy of economic freedom.
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Supply-siders promised that the problems were just ones of incentives and politics; once the thicket of regulations and taxes was cleared away, the American miracle would resume.
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"In a fully Trumpized G.O.P., Reagan's ideological coalition would crack up, with hawks drifting toward the Democrats, supply-siders fading into crankery, religious conservatives entering semi-permanent exile," Douthat wrote.
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Progressives could follow the example of Republican supply-siders, by promising that government spending would pay for itself in huge, soaring economic growth and the higher tax receipts that follow.
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Contrary to the argument of supply-siders that high marginal rates discourage work, I've never believed that my work ethic varied as the marginal tax rate went up or down.
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Clinton raised marginal tax rates on the highest-income Americans, in a move that was roundly denounced by supply-siders as economically ruinous and was uniformly opposed by Republicans in Congress.
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Supply-siders reckon that lower tax rates on labour income should raise its supply; lower taxes on capital income should, by increasing saving and investment, nurture innovations which will eventually boost productivity.
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This self-denying ordinance will be difficult for supply-siders to bear, and it will have certain economic downsides; under the right circumstances tax cuts for the rich really do have virtues.
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It's astonishingly empty: The ideological groups that occupy this space — consistent libertarians, globalist Democrats, socially liberal deficit hawks, pro-choice and pro-immigration supply-siders — are vanishingly rare within the American electorate.
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It owes its demise to the broken spiritual state of the Republican Party, exemplified not only by Roy Moore and Donald Trump but also by the supply-siders and law-and-order fetishists.
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The last batch of economists to disrupt a political party's consensus position were conservative — the so-called supply-siders who built influence in the late 1970s and gained power in the Reagan administration.
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Supply-siders and evangelicals and Cold Warriors had competing priorities in those years, but there was an underlying consensus that were we all, in some larger and more important sense, on the same side.
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Meanwhile, cheered on by supply-siders, Trump is considering using a power that previous Republican administrations felt the president did not possess to cut investment taxes sharply by indexing capital gains calculation to inflation.
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Mr. Trump's brain trust, such as it is, is composed of hard-line, right-wing supply-siders — whom even Republican economists have called "charlatans and cranks" — for whom low taxes on the rich are the overwhelming priority.
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Among the ideological waverings of Kennedy's reputation, one finds a conservative regard first being test-driven in speeches by Ronald Reagan, who focussed on J.F.K.'s Cold Warring, while Reaganite supply-siders viewed Kennedy as a tax-cutting confrère.
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"While I think that the supply-siders were wrong, and were always wrong, they were reacting to very real economic problems in the 1970s," said Michael Linden, the executive director of the Groundwork Collaborative, a liberal policy and advocacy group.
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If you think about which Republican politicians are viewed most suspiciously by rank and file Republicans and conservative thought-leaders, it isn't the supply-siders, per se, or members of the Freedom Caucus, but the ones you might call cosmopolitan-curious conservatives.
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" Paul Krugman, the liberal New York Times columnist and Nobel Prize–winning economist, often argues with Mankiw on economic policy, but also thinks "the supply-siders are cranks" who adhere to a doctrine "without a shred of logic or evidence in its favor.
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The effort is further complicated by a GOP divided between fiscal "hawks" who want any tax cuts paid for by closing tax breaks to raise revenue and "supply-siders" who believe tax cuts will eventually pay for themselves by spurring economic growth.
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There is no real ideological consistency to this group: Trump's expanding circle of apologists includes Sarah Palin and Steve Forbes, Mike Huckabee and Chris Christie; he has anti-immigration populists and Wall Street supply-siders, True Conservatives and self-conscious moderates, evangelical preachers and avowed white nationalists.
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In the same way but more so given his worse-than-Obama poll numbers, it's very hard to see how the imperial forays being urged on Trump by immigration restrictionists or supply-siders would make him more popular, or less likely to suffer a repudiation at the polls.
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A trigger would, in essence, ask those ardent supply-siders to put their money where their mouth is and insert a legislative provision stipulating that if growth doesn't come in as strongly as tax cutters anticipate, the cuts themselves will be rolled back to prevent an out-of-control deficit.
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"Many Republican lawmakers fear the electoral implications of a China dispute in the U.S. farm belt, and supply-siders — including Larry Kudlow — fear the dollar amount of potential tariffs could negate some of the impact of tax cuts, even though the overall GDP impact of the trade dispute still looks modest — for now," Valliere said.
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Trigger proponents want a mechanism that will cancel tax cuts if the fanciful growth forecasts of ardent supply-siders turn out to be wrong, but it's difficult to design a mechanism that accomplishes that without also introducing an "automatic destabilizer" that delivers a hefty dose of anti-stimulus to the economy if it falls into recession.
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But if you want to stick with the naïve supply-siders' story, then you have to credit essentially all of the economic growth following their favorite tax cuts (Reagan's in the 220s, Kennedy's in the 270s) to tax policy in order to arrive at the conclusion that these tax cuts not only paid for themselves but actually added to federal revenue.
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Supply-siders argue that in a high tax rate environment, lowering tax rates would result in either increased revenues or smaller revenue losses than one would expect relying on only static estimates of the previous tax base. This led supply-siders to advocate large reductions in marginal income and capital gains tax rates to encourage greater investment, which would produce more supply. Jude Wanniski and many others advocate a zero capital gains rate.Wanniski, Jude "Taxing Capital Gains" The increased aggregate supply would result in increased aggregate demand, hence the term "supply-side economics".
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These include removing the minimum wage and reducing the power of unions. Supply-siders argue that their reforms increase long-term growth by reducing labour costs. The increased supply of goods and services requires more workers, increasing employment. It is argued that supply-side policies, which include cutting taxes on businesses and reducing regulation, create jobs, reduce unemployment, and decrease labor's share of national income.
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"Washington View." Humboldt Sun 17 May 1982: n. pag. Print. Hanke's work to privatize public lands put him at odds with Secretary of the Interior James Watt and members of the Sagebrush Rebellion, who sought to transfer federal public lands to state control, rather than to private ownership. In 1982, Hanke left the CEA, joining a number of influential Reagan Administration supply-siders, including Martin Anderson, Norman B. Ture, and Paul Craig Roberts.
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Similarly, economists like Robert Barro argued that whilst some form of "monetary constitution" is essential for stable, depoliticized monetary policy, the form this constitution takes—for example, a gold standard, some other commodity-based standard, or a fiat currency with fixed rules for determining the quantity of money—is considerably less important. The gold standard is supported by many followers of the Austrian School of Economics, free-market libertarians and some supply-siders.
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Some supply-siders have advocated that the increases in revenue through tax cuts make drastic cuts in spending unnecessary. However, the Congressional Budget Office has consistently reported that income tax cuts increase deficits and debt and do not pay for themselves. For example, the CBO estimated that the Bush tax cuts added about $1.5 trillion to deficits and debt from 2002–2011 and it would have added nearly $3 trillion to deficits and debt over the 2010–2019 decade if fully extended at all income levels. A third group makes little distinction between debt and taxes.
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ERTA also slashed estate taxes, capital gains taxes, and corporate taxes. Critics of the act claim that it worsened federal budget deficits, while supporters credit it for bolstering the economy during the 1980s. Supply- siders argue for the tax cuts with the argument that the tax cuts would increase tax revenue; however, tax revenues declined (relative to a baseline without the cuts) due to the tax cuts and the deficit ballooned during Reagan's term in office. Much of the 1981 ERTA was backed out in September 1982 by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), sometimes called the largest tax increase of the post-war period.
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Ronald Reagan gives a televised address from the Oval Office, outlining his plan for tax reductions in July 1981 Supply-siders justified Reagan's tax cuts during the 1980s by claiming they would result in net increases in tax revenue, yet tax revenues declined (relative to a baseline without the cuts) due to Reagan's tax cuts and the deficit ballooned during Reagan's term in office. The Treasury Department studied the Reagan tax cuts and concluded they significantly reduced tax revenues relative to a baseline without them. The 1990 budget by the Reagan administration concluded that the 1981 tax cuts had caused a reduction in tax revenue. Both CBO and the Reagan Administration forecast that individual and business income tax revenues would be lower if the Reagan tax cut proposals were implemented, relative to a policy baseline without those cuts, by about $50 billion in 1982 and $210 billion by 1986.
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The risk corridors were intended to be funded by profitable insurers participating in the PPACA. However, since insurer losses have significantly exceeded their profits in the program, the risk corridors have been depleted. His efforts contributed to the inclusion of a provision in the 2014 federal budget which prevented other funding sources from being tapped to replenish the risk corridors. In March 2015, Rubio and Senator Mike Lee, Republican of Utah, proposed a tax plan which, according to The Wall Street Journal, combined thinking from "old- fashioned, Reagan-era supply siders" and a "breed of largely younger conservative reform thinkers" who are concerned with the tax burden on the middle-class. The plan would lower the top corporate income tax rate from 38% to 25%, eliminate taxes on capital gains, dividends and inherited estates, and create a new child tax credit worth up to $2,500 per child.
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