The Return of Reaganomics
History proves that so-called "Reaganomics," more properly known as supply-side economics, has worked to foster economic growth every time it is tried. Actually, it should be called "JFKnomics," because it was President John F. Kennedy who, in the 1960s, used a combination of personal and corporate tax cuts to rejuvenate the sputtering economy.

The good news: The Bush administration appears to be embracing supply-side economics, and will push for more and faster tax cuts even at the expense of short-term increases to the national deficit. So says this story, though it is laden with anti-tax cut bias.

Earlier this month, [Bush] espoused one of the central premises of Reagan's supply-side economics: that tax cuts actually increase government revenue, by stimulating the economy. Asked about this year's deficit of $159 billion after a Cabinet meeting, Bush insisted that his big tax cut of last year was not responsible for the red ink. "The deficit would have been bigger without the tax-relief package," he said.

Indeed it would have. Even Alan Greenspan has said the tax rebates of last year helped prop up the economy, which leads to smaller deficits.

The administration is pushing to make permanent those aspects of its tax package which are set to expire. Its solution to the stumbling economy is in part a new package of tax cuts, perhaps to include a reduction in the corporate income tax rate. Treasury Secretary Paul O'Neill has even put together an internal group to mull major tax-code revisions. Contrast this behavior with that of former GOP presidential nominee Bob Dole. As a Senator Dole was once denounced by a member of his own party, Rep. Newt Gingrich, as a "tax collector for the welfare state" for suggesting increased revenue enhancements.

Congressional Democrats, for their part, are quick to blame tax cuts as a major reason for the current run of red ink. But few are willing to call directly for tax-cut repeal. And in the meantime, many in the party are busy promoting more spending on prescription drugs for the elderly and other social programs.

Bad news for Democrats: tax cuts not only work economically, they also work politically. Democrats oppose them at their political peril.