Biting The Bullet On Deficits

President Reagan's economic President Reagan's economic policy keeps on churning out contradictory superlatives. Last year Reagan rammed through Congress the largest tax cut in U.S. history: $749 billion over five years. Last week bleary-eyed Senators, under the President's prodding, debated until 4:47 Friday morning before approving the biggest peacetime revenue-raising bill: $98.6 billion over three years. The measure, which seems at odds with the President's celebrated supply-side tax theory, passed by a mere three votes (50 to 47). No Democrat voted for it.

The package of tax hikes and loophole closings is...