-
Reagan election
Reagan won the presidential election of 1980. -
Period: to
Reagan Presidency
-
Reagan Lowers Tax Rates
Lowers tax rates by 25% across the board. Reagan was the first to implement such tax rates. This was a far different approach than other presidential candidates at the time. This was one of the most radical economic changes since the response to the Great Depression, the new deal. -
Tax Equity and Fiscal Responsibility Act 1982
TEFRA was created in order to reduce the budget gap by generating revenue through closure of tax loopholes and introduction of tougher enforcement of tax rules, as opposed to changing marginal income tax rates. TEFRA was introduced November 13, 1981 and was sponsored by Representative Pete Stark of California. After much deliberation the final version was signed by President Ronald Reagan on September 3, 1982. -
Tax Reform Act of 1986
The top tax rate for individuals was lowered from 50% to 28% while the bottom rate was raised from 11% to 15%. Many lower level tax brackets were consolidated, and the upper income level of the bottom rate (married filing jointly) was increased from $5,720/year to $29,750/year. This event was in line with Reagan's economic interests since the start of his presidency. Reagan's economic outlook did not change much.