“The problem is not that people are taxed too little, the problem is that government spends too much.”
- February 6, 1911 – June 5, 2004
- American
- The 40th President of the United States, Actor, Politician, Governor of California
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Quote
“The problem is not that people are taxed too little, the problem is that government spends too much.”
Explanation
This quote encapsulates Ronald Reagan’s core fiscal philosophy: that the primary issue in economic management is not a lack of revenue, but excessive government expenditure. By stating that “people are taxed too little” is not the problem, Reagan shifts the debate away from raising taxes and toward the need for government restraint and efficiency. It reflects his belief that economic prosperity and personal freedom are best preserved when individuals keep more of their earnings, and when the government operates within a lean, disciplined budget.
Reagan frequently invoked this principle during the 1980s as he pursued tax cuts and budget reductions, particularly targeting social programs he deemed inefficient or overextended. His administration was driven by supply-side economics, which held that lowering taxes would stimulate investment, productivity, and economic growth. This quote served both as a critique of previous eras of government expansion and as a justification for reforming federal programs and limiting the reach of the state.
Today, the quote continues to be a rallying cry for advocates of fiscal conservatism, limited government, and tax reform. In debates over national debt, entitlement programs, and economic stimulus, Reagan’s words are often cited to argue that structural spending problems—not under-taxation—lie at the heart of fiscal imbalance. His message remains clear: economic freedom is undermined not by what the government fails to collect, but by what it fails to control.
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