The Trump Files: Donald Told Congress the Reagan Tax Cuts Were Terrible

Now he’s proposing virtually the same thing.

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This post was originally published as part of “The Trump Files“—a collection of telling episodes, strange but true stories, and curious scenes from the life of our current president—on July 12, 2016.

Donald Trump loves to (falsely) complain at his rallies and speeches that America is “the highest-taxed country in the world.” His tax plan would slash income tax rates and deliver huge savings to the richest Americans. But he wasn’t always a fan of trickle-down, supply-side tax cuts.

In 1991, Trump told the House Budget Committee’s Subcommittee on Urgent Fiscal Matters that President Ronald Reagan had screwed up with his 1986 tax cuts, which cut the highest income tax rates nearly in half, from 50 percent to 28 percent.

“In the real estate business we’re in an absolute depression, and one of the reasons we’re there is what happened in 1986,” he said. “Something has to be done. It has to be brought back. It has to be reformed.”

Trump contended that the low income tax rates took away rich people’s reason to invest and that the economy as a whole suffered as a result. He recommended a return to much higher rates for the rich, arguing that they cause more people to invest in real estate. But he didn’t quite explain why that would happen. “The fact is that 25 percent for high-income people—for high-income people—it should be raised substantially,” he said. “I say leave the middle, leave the low—lower ’em. But people with money have to have the incentive.”

A tax rate of 25 percent (which Trump erroneously thought was the top income tax rate at the time) is now the maximum income tax rate that Trump calls for in his 2016 tax plan.

Read the rest of “The Trump Files”:

 

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"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

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