Revolution of 1978

July 14, 1977 was an historic day. On that day Congressman Jack Kemp of Buffalo, N.Y. and Senator William Roth of Delaware joined together to announce their co-sponsorship of a bill to cut all individual income tax rates by approximately a third. The announcement produced little interest; only three reporters showed up for the press conference. But just one year later, all that had changed. On July 14, 1978 the Senate Finance Committee opened hearings on the Kemp-Roth Tax Reduction Act in a packed hearing room filled with reporters and television cameras. The Kemp-Roth bill had picked up 179 co-sponsors in the House and Senate, the official endorsement of the Republican National Committee, and enthusiastic support across the United States from people weary of overtaxation. In short, the Kemp-Roth bill is now not only a major piece of legislation, but also the focal point of a counter-revolution in American politics that will have impact for years to come.

The origins of the Kemp-Roth counter-revolution were inauspicious enough. In 1974, Senator Paul Fannin of Arizona introduced a bill to aid capital formation by cutting taxes on business. Kemp liked the idea and decided to develop legislation of his own along similar lines. The bill he came up with sought to eliminate the double taxation of corporate profits, institute a tax credit for increased savings and investment by individuals, and cut the corporate tax rate, among other things.

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Bruce Bartlett

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July 14, 1977 was an historic day. On that day Congressman Jack Kemp of Buffalo, N.Y. and Senator William Roth of Delaware joined together to announce their co-sponsorship of a bill to cut all individual income tax rates by approximately a third. The announcement produced little interest; only three reporters showed up for the press conference. But just one year later, all that had changed. On July 14, 1978 the Senate Finance Committee opened hearings on the Kemp-Roth Tax Reduction Act in a packed hearing room filled with reporters and television cameras. The Kemp-Roth bill had picked up 179 co-sponsors in the House and Senate, the official endorsement of the Republican National Committee, and enthusiastic support across the United States from people weary of overtaxation. In short, the Kemp-Roth bill is now not only a major piece of legislation, but also the focal point of a counter-revolution in American politics that will have impact for years to come.

The origins of the Kemp-Roth counter-revolution were inauspicious enough. In 1974, Senator Paul Fannin of Arizona introduced a bill to aid capital formation by cutting taxes on business. Kemp liked the idea and decided to develop legislation of his own along similar lines. The bill he came up with sought to eliminate the double taxation of corporate profits, institute a tax credit for increased savings and investment by individuals, and cut the corporate tax rate, among other things.