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...economic options he has to this point adamantly ruled out. One would be raising taxes, perhaps by proposing new excises on cigarettes and liquor, or by accompanying the deregulation of natural gas with a windfall profits levy that could produce $20 billion a year. New York Congressman Jack Kemp, a firm believer in the tax reductions, charges that his lapsed protégé, Stockman, deliberately concocted the frightening deficit forecasts and made them public in order to necessitate such action. Another route would be for Reagan to seek a palatable way to curtail the inflation-based increases in entitlement...

Author: /time Magazine | Title: Caught in a Riptide of Red Ink | 12/21/1981 | See Source »

Republican Senator William Roth, coauthor of what he prefers to call the Roth-Kemp tax act, joked that he had invited Stockman to a Thanksgiving dinner at which the menu would include "Trojan horse pâté, Château Hemlock '81, trickle-down consommé and foot-in-mouth filet." After dinner, said Roth, Stockman would be "offered a blindfold and a cigarette." Actually, Roth was furious at Stockman's remarks about supply-side economics, saying, "I'm outraged...

Author: /time Magazine | Title: A Visit to the Woodshed | 11/23/1981 | See Source »

...secondary matter. The original argument was that the top bracket was too high, and that's having the most devastating effect on the economy. [However] to make this palatable as a political matter, you had to bring down all the brackets. But, I mean, Kemp-Roth was always a Trojan horse to bring down the top rate. .. It's kind of hard to sell 'trickle-down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle-down.' Supply-side is 'trickle-down' theory...

Author: /time Magazine | Title: What Stockman Said | 11/23/1981 | See Source »

...Crackpots, more conventional economists called them, but the three set their nets out and fished for disciples, drawing in with ease the school of neo-conservatives, ripe for policies that put to test their surmises that an unequal distribution of society's rewards best served its interests. Congressman Jack Kemp took off his football helmet and preached of his countrymen's spirit for hard work, one which the across-the-board tax cuts he proposed would no doubt sanctify. Contributing his Harvard pedigree to the cause of supply-side's credibility was Martin Feldstein. He designed models to prove that...

Author: By Siddhartha Mazumdar, | Title: Supply-Side Blues | 11/18/1981 | See Source »

...sense of ideological purity--there could be no disjunction between politics and economics for David Stockman. The faith in the future and goodness of America, hard work and private enterprise was the same that inspired his confidence in the theories of Arthur Laffer and the tax cut of Congressmen Kemp and Roth...

Author: By Siddhartha Mazumdar, | Title: Supply-Side Blues | 11/18/1981 | See Source »

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