Page "Reaganomics" Paragraph 23

During the Reagan administration, federal receipts grew from $ 618 billion to $ 991 billion ( an increase of 60 %); while outlays grew from $ 746 billion to $ 1144 billion ( an increase of 53 %).

According to a 1996 report of the Joint Economic Committee of the United States Congress, during Reagan's two terms, and through 1993, the top 10 % of taxpayers paid an increased share of income taxes ( not including payroll taxes ) to the Federal government, while the lowest 50 % of taxpayers paid a reduced share of income tax revenue.

Personal income tax revenues declined from 9. 4 % GDP in 1981 to 8. 3 % GDP in 1989, while payroll tax revenues increased from 6. 0 % GDP to 6. 7 % GDP during the same period.

This represented a more regressive tax regime, with more revenue derived from the flat payroll tax versus the progressive income tax.