An interesting irony appeared in an Oct. 2 article in the Raleigh News and Observer (“Three sides to tax story”). The article highlighted ads by Elizabeth Dole claiming that Erskine Bowles, as chief of staff for President Clinton, supported the largest tax increase in American history. Bowles responded by claiming it was Dole, as secretary of transportation in 1982, who supported the largest tax increase.

The irony is that for the last 15 years Democrats in general, and the Clinton Administration in particular, have claimed that President Reagan’s tax cuts in 1981 caused deficits to soar during the following decade. Now the Reagan Administration is being admonished by a high-ranking Democrat and representative of the Clinton Administration for raising taxes.

Bowles is actually acknowledging the truth about the tax cuts implemented in 1981. They could not have been responsible for what the Democrats like to refer to as the Reagan deficits because they were mostly repealed in 1982 by the Democrat-controlled House of Representatives. In fact in 1982 Reagan went along with a massive tax increase as part of a deal with Democrats in Congress.

He reluctantly agreed to the tax increase advocated by Democrats in exchange for a promise that Congress would implement $2.00 in spending cuts for every $1.00 in tax increases. Unsurprisingly the Democrats reneged on the deal and once the tax increase was implemented they more than doubled spending over the next 5 years.

Cordato is a senior fellow for the John Locke Foundation.