Kennedy had taxes cut and the 60's boomed, Reagan cut taxes and the economy boomed. Bush cut taxes and it boomed again. When the economy grows the government can take in more taxes because of more employment and corporate profits. The problem today is twofold. Deregulation of the banking industry under Clinton and banks loaning money like crazy and the mostly younger people charging for everything they wanted, and buying homes with ARMS and ballon payments in 5 years. Banks never did this before. If the regulations stayed in place for banks we would not be having this deep of recession, and if people were more responsible with their finances. All can't be blamed on the government, nor the banks. Both political parties allowed this to happen, starting with Clinton. Also Clinton was riding the boom from the Reagan plans (401k, lower taxes, less government). I know some will say the government spending grew under Reagan, but when he took office the feds were 34% of the economy, when he left it was 22%. It grew, but less than the economy. We also had a 600 ship navy and could patrol the entire world's oceans at once. Caused Soviet Union to colapse trying to keep up with us. I miss Reagan.