PolitiFact: Did 1986 tax cut help economy as President Trump claims?

Posted at 6:33 PM, Sep 08, 2017
and last updated 2017-09-08 19:36:21-04

President Trump is making a major push for tax cuts as he tries to score a legacy legislative victory.

In an op-ed piece for the Milwaukee Journal Sentinel, President Trump claimed when President Ronald Reagan cut the business tax rate to 34% in 1986. "It worked," said Trump." Our economy boomed, the middle class thrived and median family income increased."

"The president made his statement as he was arguing for more tax cuts and more tax reform," said Tom Kertscher with the Milwaukee Journal Sentinel.

PolitiFact Wisconsin talked to multiple economists to break down that claim. For starters, the tax cut did help the economy and some incomes grow.

"Some economists we spoke to said that the 1986 cut in the corporate tax rate did help the economy, boost productivity and help raise some incomes among people in the middle class," said Kertscher.

But was that tax cut the sole reason for the boom? PolitiFact Wisconsin found other factors were in play - like trade policies.

"All seven experts we spoke to were unanimous in saying that look, you can't attribute those kind of improvements in the economy to one single factor," said Kertscher, "and certainly not to one single tax cut."

PolitiFact Wisconsin rated President Trump's claim Mostly False.