There have been three major tax cuts enacted under the leadership of Presidents John F. Kennedy, Ronald Reagan and George W. Bush.

Some conservative columnists have maintained that, in each case, not only did the economy flourish but federal tax revenue increased.

A review of the on-budget federal income, by year, during President George W. Bush's time in the White House, clearly demonstrates that the Bush tax cuts increased, not decreased, federal income.

The data that follows shows that there was a small tax cut in 2001 but the major ones occurred in 2003.

Federal total income (trillions)
2000 - $2.025

2001 - $1.991

2002 - $1.853

2003 - $1.762

2004 - $1.880

2005 - $2.154 (highest income in history)

2006 - $2.407

2007 - $2.567

2008 - $2.524

Data provided by the Heritage Foundation shows that, beginning in 2003, economic growth (gross domestic product) began to recover from the recession that Bush inherited from President Bill Clinton. By the third quarter, it had jumped to 7.5 percent. Equally important was the job-creation picture, which saw an increase of 311,000 jobs at the same time. This continued with job growth hitting 2.4 million in 2006.

This positive economic growth, fueled by Bush's 2001 and 2003 tax cuts, began in early 2003 and continued for 52 straight months. This was the longest period of economic growth in our nation's history.

It ended in May 2007 only after Democrats Nancy Pelosi and Harry Reid had assumed control of the Congress. It would not be unrealistic to call the recession, which began shortly thereafter, as the "Pelosi/Reid Recession."

Those who push for increased taxes on the wealthy fail to recognize that it is lower taxes, not higher taxes, which spur the economy and increase jobs as well as federal tax revenue.

In addition, they ignore that, when higher taxes on the wealthy are levied, income to the federal government shrinks. Why? The wealthy hire financial planners, who use the many tax loopholes in our code to reduce their tax obligations.

Back in the 1980s, prior to the Reagan tax cuts, I attended a financial planning session where a local CPA told the audience that he could help any person in the 50 percent tax bracket to rearrange his portfolio so that he would pay no federal income tax.

Incidentally many of the tax loopholes were enacted during the 40 years prior to 1994, when the Democratic Party controlled the Congress. Most of them still exist.

Conclusions:

• Higher taxes on wealthy Americans will not result in more tax revenue, so long as the tax loopholes exist.

• Higher taxes on wealthy Americans will probably cause loss of jobs. Conversely, lower taxes on small business owners leads to job creation, with a resultant increase in tax revenue as the data above confirms. The more the federal government takes in taxes, the less there is available to create jobs and improve the economy.

• The Bush tax cuts resulted in an economy that was a huge success until the voting public, in November 2006, turned control of Congress over to Pelosi and Reid.

• A better term for the recession might be the "Reid/Pelosi Recession."

Frank Fryburg, of Manheim Township, has long been active in Lancaster County Republican politics.