To be fair, the 10.8% rate hit in Dec. 1982. Reagan took office Jan 1981, and didn’t get a chance to write his first budget until Fiscal year 1982, which is Sept 1981. Once Reagan's policies took effect, the UE rate started dropping every month until it was 5.4% when he left office. This was a true drop in UE not a manufactured one that the Obama administration has been using.
Reaganomics was based on the theory of supply side economics which states that tax cuts give workers more money to spend, creating demand. Tax cuts give companies more cash to hire new workers and expand their businesses. Eventually, economic growth expands the tax base enough to replace the government revenue initially lost from the tax cuts. This indeed happened and can be seen by the drop in UE by 5.2%
Reagan delivered on each of his four major policy objectives, although not to the extent that he and his supporters had hoped. Inflation was tamed -- thanks to monetary, not fiscal policy. Reagan's tax cuts did end the recession. However, government spending wasn't lowered, just shifted from domestic programs to defense. The result? The Federal debt almost tripled, from $997 billion in 1981 to $2.857 trillion in 1989. That's a far cry from the 12 trillion Obama has added in 5 years.
Tax rates were cut significantly, stimulating consumer demand. By Reagan's last year in office, the top income tax rate was down to 28% for every one making $18,550 or more. Anyone making less paid no taxes at all. This was a significant drop from the 1980 top tax rate of 70% for individuals earning $108,000 or more. In addition, Reagan made sure tax brackets were indexed for inflation. These tax cuts were somewhat offset by several tax increases in the Social Security payroll tax and some excise taxes, and some deductions that were eliminated.
My guess is you would rather go back to paying 28 to 70% in taxes. Oh BTW the facts show that Reagan cut taxes for the middle class not just the rich as you claim. tThe tax increases that he did pass were part of his deal with the Democrats to get the rest of his tax cuts passed. Reagan was asked about this after he left office and he said that was one of his biggest regrets that he did not stand firmer on not raising taxes.
