The American Spectator : Our One-Term President

The American Spectator : Our One-Term President:

The liberals as usual understood nothing. Ronald Reagan did understand what was going on, however, which is why he became a hero to the 'Reagan Democrats.' The Reagan tax cut, enacted within months of his becoming president, was one of the most important changes in tax law in the postwar era; it also inspired Margaret Thatcher to enact comparable tax reductions in Britain.

But the new U.S. law had this problem. It didn't take effect until 1983. The delay encouraged the postponement of earnings and economic decision-making until 1983, when the much more friendly tax rates took effect. Thus the slump of 1982."