Government spending cuts effect economy

The July 28 story, “Debt crisis: How did we get here?” starts to explain the debt problem. However, more of the story is the relationship of tax cuts to debt increases.

In February 1981, just after President Reagan took office, the debt ceiling reached $985 billion. During Reagan's term, the debt ceiling was raised 16 more times, reaching $2.8 trillion. Reagan's term started with dramatic tax cuts to the top rates, but later Reagan realized the cuts were too deep and were modified.

During George H.W. Bush's term, the ceiling was raised four times, reaching $4.145 trillion.

During President Clinton's term the debt ceiling was raised four times to $5.95 trillion by August 1997.

The reduction in the Reagan tax cuts, the increase in taxes by George H.W. Bush, and the tax increases by Clinton in 1996 enabled the longest period of no debt limit increases since the Great Depression (58 months.)

In 2001 and 2003, we had large tax cuts again through rate changes, reclassifying some types of income, and more deductions.

From June 2002 to Feb. 17, 2009, the debt ceiling was raised from $5.9 trillion to $12.1 trillion. By February 2010, to $14.294 trillion.

It is clear that tax cuts do not spur the economy enough to pay for all the services our government provides and that raising taxes on just the rich will not make up the shortfall.

It is also clear that government spending cuts have a more direct downward effect on the economy and jobs than increasing taxes does.

Roger Schnittjer

Mount Vernon