“In 1982, Ronald Reagan sat down with the Democrats and they had a deal — a $3 cut in spending for every dollar they raised in taxes. Guess what? They raised the taxes, and they never cut the spending.”

— oft-repeated story told in Washington during “fiscal cliff” negotiations 

It had become an article of faith by conservatives that President Reagan reluctantly agreed to raise taxes in his first term in office — and that Congress then failed to follow though on promised spending cuts. The frequent recitation of this story during the current fiscal debate made us wonder: What actually happened three decades ago?