Reagan: Morning After In America

Why the Gipper's tax-cut guru is aghast at today's GOP.

Moments before the new Republican House was to be sworn in, Rep. Tom Price (R-Ga.), the head of the House Republican Policy Committee and the chamber's fifth-ranking GOPer, was standing in the ornate Speaker's Lobby of the Capitol, near a roaring fire. In the celebratory hustle and bustle—new members rushing to pick up lapel pins and license plates, their kids noisily exploring the building—a reporter approached Price with a question: How could he reconcile the GOP's pledge to tame the deficit with its decision to dodge budget calculations about the costs of tax cuts and repealing health care reform? Without missing a beat, Price replied, "It doesn't cost the government money to decrease taxes. When you decrease taxes, as President Kennedy proved, as Reagan proved, you increase revenue to the federal government."

David Stockman, Reagan's first budget director in the 1980s and the godfather of the Gipper's supply-side tax cuts, was watching the proceedings from his home in Colorado and shaking his head. Republicans like Price were, in Stockman's view, misreading history—even perverting the Reagan message. As he saw it, they were guiding the nation toward financial ruin by pushing for tax cuts without having the guts to seriously slash spending—and dishonestly justifying their "flimflam" by citing his work.

When I spoke to Stockman that day, he was still laughing about a tidbit he had read earlier that morning: The owner of a specialty food store on Manhattan's Upper East Side—Maureen's Passion—was touting the top-income tax cuts the GOP had shoved into Obama's compromise. "It all turned around when the tax bill passed," he'd told a financial news website. "Caviar! It's jumping off the shelf."

"So there you go," Stockman scoffed. "That's a real economic recovery."

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