Herding Cats, by Trent Lott: on Tax Reform

Ronald Reagan: 1985 Tax Code has unfair loopholes for real estate industry

The president's advisers were pushing a series of tax increases on the real estate industry as reform. "We have cut tax rates and capital gains," Reagan told me. "And now we have this unfair tax code with loopholes for real estate and industry." (The closing of this so-called loophole would almost crush Houston, Texas. After the bill passed, the real estate market there collapsed.)

In my opinion, the bill wasn't really about real estate at all; it was a manifestation of Reagan's old worries about the deficit. But I put aside my misgivings, cranked up the whip organization and passed it. I still regret it.

Trent Lott: 1985: Regrets supporting Reagan's tax reform

At a highly charged White House meeting, the president launched into a sales pitch. I was unmoved. I said, "I don't agree that this is some sort of tax reform. I just think it's another tax increase. I don't think it's the right thing for the country."

The president stopped and turned toward me. "Well, if I can't count on my whip, who can I count on?" I leaned back in my chair and thought about that. Finally, I leaned forward. "I'll do it," I said, more eagerly than I'd expected--knowing full well that it would be the biggest legislative mistake of my years as whip, and the worst vote I had yet cast in the House.

I let him talk me into it, because of my admiration for him and because of the leadership responsibility that was inherent to my elected office. I knew it was wrong. I still regret it.