According to wikipedia In  Reagan significantly reduced the maximum tax rate which affected the highest income earners and lowered the top marginal tax rate from  to  in  he further reduced the rate to  The federal deficit fell from  of GDP in  to  of GDP in  The Federal deficit in Reagans final budget fell to  of GDP httpenwikipediaorgwikiReaganomics  Also according to wikipedia it was increased borrowing not increased spending that lead to Reagan deficits as a shortrun strategy to reduce inflation and lower nominal interest rates the US borrowed both domestically and abroad to cover the Federal budget deficits raising the national debt from  billion to  trillion This led to the US moving from the worlds largest international creditor to the worlds largest debtor nation httpenwikipediaorgwikiReaganomics  Also according to wikipedia during the Reagan administration federal receipts grew at an average rate of   attributed to higher Social Security receipts httpenwikipediaorgwikiReaganomics