(ConservativePeak.com)- Everyone likes tax cuts. Well, most people like tax cuts. They’re usually implemented during times of recession or economic stagnation, and presidents have used this tactic many times before. President Donald Trump hit headlines in 2017 when he implemented record-breaking tax cuts for America’s businesses, but he was preceded by two other Republican presidents who did the same.
- Donald Trump’s 2018 Tax Cuts
In December 2017, President Donald Trump signed the Tax Cuts and Jobs Act of 2017 into law. The bill went into effect in January of 2018 and while polls initially showed Americans opposing it, the economic impact it had was hugely popular.
President Trump implemented the cuts to improve the economy after it saw the slowest ever recovery under the Obama administration.
The law allowed people to skip the itemizing process, it reduced taxable incomes, and self-employed workers took home a 20% income deduction. Business tax cuts were made permanent and individual tax rates were lowered. It resulted in businesses paying bonuses in record quantities to employees in Christmas 2018 and, until the Coronavirus pandemic, gave America the biggest economic boost in history.
- George W. Bush Tax Cuts
President George W. Bush passed two tax cuts, the first in 2001, and the second in 2003. In total, the cuts lowered the top income tax rate by 4.6%, slashing it to 35%. The cuts were put into place for 10 years but were later made permanent under the Obama administration.
Bush implemented the cuts to help improve the economy as it began to falter, but it only took a few years until the economy crashed in 2008.
- Ronald Reagan’s Historic Tax Cuts
Ronald Reagan, at the time, implemented the biggest tax cuts in American history. Following a recession in the late 70s and early 80s, Ronald Reagan cut the top tax rate from 70% to 50%, and by 1984, the economy’s growth rate was the best it had been since the early 60s.
Then, during his second term, Reagan implemented more tax cuts that lowered the top rate to just 28%, which was the lowest point in the post-war era. Over the next five years, however, the economy stuttered under the leadership of President George H. W. Bush