Extract from British record of MT meeting with President Reagan at Williamsburg
The Prime Minister raised with the President the question of the U.S. budget deficit. The President replied to the effect that he was convinced that the American economic recovery was linked to his tax cuts. If these cuts were not fully implemented, the recovery would be aborted. The implication of economic recovery was that national income would rise and this process would by itself bring down the deficit substantially in 1985/86.