When Ronald Reagan ran for president with an economic plan heavily defined by tax cuts, he was ridiculed. By both sides. It was accepted wisdom among Democrats and Republicans that reducing the penalty placed on work would increase inflationary pressures that were already high.
Thankfully Reagan combined learnedness with common sense in ways rare for a politicians. As such, he expertly put to bed the absurdity of tax cuts as an inflation instigator during a debate with his Democratic opponent for president, Jimmy Carter. Lightly paraphrasing Reagan, he asked Carter why it was inflationary to let people keep more of the money they earned, but not inflationary for government to take it and spend it. Reagan’s quip proved devastating to Carter. He went on to win the 1980 election in landslide fashion.
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