[WilliamAhrndt]

If personal and corporate tax rates from the end of the Reagan era remained in place up to the current time, what would be the state of our National Debt and Budget Deficit?

[ebaines]

In 1988 the top federal income tax rate was 28% (compared to 35% today). However that top rate applied to all income sources, whereas today there are preferential rates for long term capital gains and dividends, which max at 15%. Also, since 1988 there have been big increases in SS and medicaire taxes, so one could argue that we'd be worse off from a total deficit point of view if the 1988 rates had remained.

I have not found a well argued position to compare how tax revenues today would differ if these old rates were still in effect, so who knows? Some today are arguing that rates were higher under Reagan than they are now (which is partially correct, as it took several years for all his tax cuts to take effect) - but no one is arguing for a return to a 28% top rate. FYI - here's a site that at least tried to set the record straight on this political posturing:
PolitiFact | Barack Obama says taxes are lower today than under Reagan, Eisenhower