That was only after he had slashed the top rate:
http://money.cnn.com/2010/09/08/news/economy/reagan_years_taxes/As a result of the 1981 and 1986 bills, the top income tax rate was slashed from 70% to 28%.
After Reagan's first year in office, the annual deficit was 2.6% of gross domestic product. But it hit a high of 6% in 1983, stayed in the 5% range for the next three years, and fell to 3.1% by 1988. (By comparison, this year it's projected to be 9% but is expected to drop considerably thereafter.)
In 1983, for example, he signed off on Social Security reform legislation that, among other things, accelerated an increase in the payroll tax rate, required that higher-income beneficiaries pay income tax on part of their benefits, and required the self-employed to pay the full payroll tax rate, rather than just the portion normally paid by employees.
The tax reform of 1986, meanwhile, wasn't designed to increase federal tax revenue. But that didn't mean that no one's taxes went up. Because the reform bill eliminated or reduced many tax breaks and shelters, high-income tax filers who previously paid little ended up with bigger tax bills.
He raised a variety of add on taxes, SS for one. He also cut loopholes where people were forced to pay taxes on more of their money. As with most presidents, what he thought would work and what did was not the same thing. Reagan also increased the Defense budget up to 22%, which I wish we still has today.
FDR imposed a 99% tax for one year, which even he could not sustain for the next.
And thanks for a reply. I thought I had broken a taboo or something.