type: timeline_event
Representative Jack Kemp (R-NY) and Senator William Roth (R-DE) introduce legislation to cut individual income taxes by approximately one-third across the board - 10 percent per year for three years - translating Arthur Laffer and Jude Wanniski's supply-side economic theory into concrete legislative action. Kemp, converted to supply-side economics in 1976 after Wall Street Journal's Wanniski interviewed him at his congressional office and introduced him to Laffer's theories, becomes the chief political advocate for tax cuts benefiting the wealthy under the guise of promoting economic growth. The Kemp-Roth bill nearly wins passage during the Carter presidency but is blocked by President Carter over deficit concerns, demonstrating that some Democrats still resist the supply-side ideology being promoted through think tanks, media, and academic institutions. Undeterred, Kemp successfully persuades the Republican Party to adopt Kemp-Roth as its official position and convinces Ronald Reagan to make tax reduction the centerpiece of his 1980 presidential campaign. This represents the legislative dimension of supply-side economics propagation - from Laffer's 1974 napkin sketch, through Wanniski's 1978 book and articles, to concrete congressional legislation in 1977, to Republican Party platform, to Reagan presidential campaign, and ultimately to the Economic Recovery Tax Act of 1981 (ERTA). The bill demonstrates how academic theory (Chicago School), media advocacy (WSJ), and political action (Kemp-Roth) coordinate to advance corporate-friendly tax policy.