The result of the large tax cuts in the first Reagan Administration demonstrated very convincingly that Arthur Laffer was correct when he asserted that cuts in tax rates would increase tax revenue.

The large tax cuts during the first Reagan Administration did not conclusively demonstrate that cuts in tax rates would increase tax revenue as asserted by Arthur Laffer. While some economic growth occurred, the federal budget deficit significantly increased during Reagan's presidency, indicating that the tax cuts did not lead to sufficient revenue increases to offset the reductions.