Revised February 7, 2001

How the Bush Tax Cut Compares in Size to the Reagan Tax Cuts

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On February 7, the Center on Budget and Policy Priorities issued an analysis, "How the Bush Tax Cut Compares in Size to the Reagan Tax Cuts." It compares the size of the President’s proposed tax cuts to the Reagan tax cut. The National Taxpayers Union recently released a report arguing that President Bush’s proposed tax cut is significantly smaller than the 1981 Reagan tax cut. The White House has begun to echo these claims and to suggest this shows the proposed tax cut is of a responsible size. The paper analyzes the claims. It finds: