Reagan appears before Congress for the first time since the assassination attempt. He receives a hero's welcome and overwhelming support for his economic package, which includes cuts in social programs and taxes, and increases in defense spending.
July 29, 1981
Congress passes Reagan's tax bill. Instead of a 30% tax cut over three years, Reagan accepts 25%.
Aug. 3, 1981
Air traffic controllers go on strike. Reagan gives them 48 hours to get back to work, and fires those who refuse.