Nation: Opening the Tax Battle

As the economy sinks, Reagan and Carter jostle over 1980 's first issue

It is one of the oldest traditions in politics for the governing party to cut taxes in an election year, but this year, the Carter Administration vowed, that would not happen. Absolutely not, declared Jimmy Carter. Absolutely not, vowed Treasury Secretary G. William Miller. Absolutely not, echoed Federal Reserve Chairman Paul Volcker. The great problem was inflation, the Administration said throughout the spring, and that required a balanced budget, and no tax cut. "I will not consider any reduction in taxes,"...

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