Business Report: The biggest federal tax cuts of recent times - Hawaii News Now - KGMB and KHNL

Business Report: The biggest federal tax cuts of recent times

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HONOLULU (HawaiiNewsNow) -

At least a dozen time in the past two months, President Trump has declared that the Republican tax plan has the biggest tax cut in the history of our country, bigger than Reagan. Let's discuss this, while we look at a chronology of major tax cuts enacted in the past 40 years.

1981 – Reagan – major tax cut.
1986 – Reagan – lowers tax rates.
1997 – Clinton – Taxpayer Relief Act.
2001 – Bush II – major tax cut.
2003 – Bush II – major tax cut.
2012 – Obama – extends Bush tax cuts.

The Treasury Department says the biggest tax cut in history is the 1981 Reagan tax cut, measured as a percentage of the economy, AND measured by reduction in federal revenues. In fact, it reduced federal revenues so much Reagan had to sit still for not one but several tax increases. A third way to measure the size of a tax cut is in inflation adjusted dollars. But by that metric, Obama's tax cut was the biggest. I've mentioned before that there are currently two versions of the GOP plan and neither is final. But no version proposed as this time comes close to being the largest tax cut ever, but any of these measures.

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