WASHINGTON, August 13th – Most Americans credit President Ronald Reagan with the fall of the Soviet Empire. Others credit him for the renewal of American patriotism and pride. But today marks the 20th anniversary of Ronald Reagan\’s greatest domestic achievement: Passage of the Kemp-Roth tax relief plan on August 13th, 1981.
Americans across the nation who admired the 40th president\’s leadership can today celebrate passage of Kemp-Roth, which lowered personal income taxes by 30% across the board, reversing oppressive bracket-creep and the 70% brackets that burdened taxpayers throughout the Carter years. The cut totaled 3.3% of GDP, dwarfing both President Kennedy\’s tax cut (2.2% of GDP) and President George W. Bush\’s tax cut (1.1% of GDP).
Grover Norquist, president of Americans for Tax Reform, called Kemp-Roth "a genuine restoration of America\’s tradition of low taxes and free enterprise, at a time when she needed it most. Prosperity of today\’s scale could never have existed without Kemp-Roth."
"When Reagan ascended to the presidency in 1981, he inherited an economic crisis of disastrous proportions. Inflation ran 13.5%, industrial production had dropped, interest rates soared at 21.5%, and marginal taxes reached heights of 70%. His bold agenda sought deep across-the-board tax cuts, spending cuts, massive deregulation of industry, and sound monetary policies. And his policies were a staggering success: By the end of his tenure in 1988, America was on the way to her longest peacetime economic expansion thus far, creating over 20 million new jobs in the process."
Norquist concluded: "Ronald Reagan\’s legacy pervades all aspects of American life, from America\’s renewed courage in international affairs, to the emancipation of hundreds of millions of people from Soviet despotism, to the benefits we Americans feel every day from the easing of our tax burdens. The legacy of Kemp-Roth lives on, and President George W. Bush\’s tax relief plan is the latest renewal of those ideals. Most importantly, more tax relief is on the way."