Ronald Reagan in Time to Get Tough, by Donald Trump

On Budget & Economy: Supply-side economics is just common sense

Here's the really fascinating part--the part liberals remain clueless about: if the federal government really wants to "stick it" to rich folks and confiscate more of their hard-earned money to fund their insane spending sprees on counterproductive social programs then they should lower, not raise, taxes. Before President Reagan instituted the Reagan tax cuts, the richest 1 percent of Americans paid 18 percent of all federal income taxes. The top marginal rates then went from a suffocating 70 percent down to 28 percent. And what was the result? Their portion of the national tax bill actually doubled--they paid 36 percent of federal income taxes and produced 23 percent of the nation's income. As President Reagan explained, "A few economists call this principle supply-side economics. I just call it common sense." Source: Time to Get Tough, by Donald Trump, p. 56 Dec 5, 2011

On Corporations: Businesses don't pay taxes; it's all passed on to customers

Here's how President Reagan explained the corrosive influence of corporate taxes on the average American:

"Some say shift the tax burden to business and industry, but business doesn't pay taxes. Oh, don't get the wrong idea. Business is being taxed, so much so that we're being priced out of the world market. But business must pass its costs of operations--and that includes taxes--on to the customer in the price of the product. Only people pay taxes, all the taxes. Government just uses businesses in a kind of sneaky way to help collect the taxes. They're hidden in the price; we aren't aware of how much tax we actually pay."

Reagan was right. If Americans understood just how many hidden government fees and taxes are absorbed into the price of the goods and services they buy, they would be irate.

Source: Time to Get Tough, by Donald Trump, p. 57 Dec 5, 2011

On Social Security: 1983: Ironclad commitment to Social Security

It's not unreasonable for people who paid into a system for decades to expect to get their money's worth--that's not an "entitlement," that's honoring a deal. We as a society must also make an ironclad commitment to providing a safety net for those who can't make one for themselves.

On April 20, 1983, Reagan signed a bill to preserve Social Security. At that bill signing, the president said words every Republican should heed:

"This bill demonstrates for all time our nation's ironclad commitment to Social Security. It assures the elderly that America will always keep the promises made in troubled times a half a century ago. It assures those who are still working that they, too, have a pact with the future. From this day forward, they have one pledge that they will get their fair share of benefits when they retire."

President Reagan had it right: Social Security is here to stay. To be sure, we must reform it, root out the fraud, make it more efficient, and ensure that the program is solvent.

Source: Time to Get Tough, by Donald Trump, p. 69 Dec 5, 2011

On Tax Reform: System that penalizes success and discourages work is wrong

No doubt you work hard for your money--I know I do--and you should be permitted to keep more of it. Anything less creates a disincentive for a strong national work ethic. President Ronald Reagan saw it the same way:

"The more government takes in taxes, the less incentive people have to work. What coal miner or assembly-line worker jumps at the offer of overtime when he knows Uncle Sam is going to take sixty percent or more of his extra pay? Any system that penalizes success and accomplishment is wrong. Any system that discourages work, discourages productivity, discourages economic progress, is wrong.

"If, on the other hand, you reduce tax rats and allow people to spend or save more of what they earn, they'll become more industrious; they'll have more incentive to work hard, and money they earn will add fuel to the great economic machine that energizes our national progress. The result: more prosperity for all--and more revenue for government."

Source: Time to Get Tough, by Donald Trump, p. 51-52 Dec 5, 2011

The above quotations are from Time to Get Tough: Making America #1 Again, by Donald Trump. Click here for main summary page. Click here for a profile of Ronald Reagan. Click here for Ronald Reagan on all issues.
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