The Reagan Tax Cuts And Foreign Policy Essay -- essays research papers

The Reagan assess Cuts and Foreign Policy     During the 1980s President Ronald Reagans (our fortieth president from1981 to 1989) domestic policy of a substantial levyation income income recognize led to greatly increasedstinting prosperity for our country. During Reagans administration marked flips were made to the tax code and stinting statistics showed a major changefor the better. However, at the same time, the Democrats controlled the Congressand continued increased spending against Reagans wishes. The peg stintingCommittee stated that an across-the-board tax neck was non new. In the 20s theMellon tax cuts were implemented by Secretary of Treasury Andrew Mellon duringthe Administrations of Ho all over, Harding, and Coolidge. In the 60s Kennedyintroduced tax cuts. In both instances the decrease of high peripheral tax ratessomehow increased tax payments by the rich. Perhaps a foreshadow of things tocome. Debates were raging over the Reagan tax cuts, k nown as the EconomicRecovery Tax Act of 1981 (or, ERTA). This act was designed to spur savings,investment, work, and economic efficiency. This policy would impose a 25%across-the-board cut in personal marginal tax rates. In the act of decreasingmarginal tax rates, and stimulating economic incentives, ERTA would increase theflow of resources into production, thus lifting economic growth. This policyreceived much criticism because its opponents argued that ERTA would be a giveaway to the rich, because their tax payments would collapse. Reagan workedhard and skillfully with the congress to obtain legislation to take ineconomic growth and curb inflation, he embarked upon a course to cut taxes andcurb inflation. President Reagan was able to sign into law a tax cut in late1981 even though congressional Democrats assay to block his cuts. All tax payersreceived these cuts which helped to spur the economy. The cuts were taken overthree years with a 5% cut in 1981, a 10% cut for 1982, and i n 1983 another 10%cut. Reagans call for abundant changes in the federal income tax laws helpedbring about passage of the Tax Reform Act of 1986. In 1986 Reagan introduced theTax Reform act of 1986. The tax reform act of 1986 chopped taxes, and indexedtaxes for inflation as well. During Reagans first call the inflation rate wasat -5.7%, unemployment was at1.4%, interest rates were at -.7, and the unwashedna... ... The aides had then illegallygiven some of the arms notes to contra guerrillas.ConclusionThe Reagan Tax cuts showed that reducing excessive tax rates stimulatesgrowth, reduces tax avoidance, and can increase the share of tax payments givenby the rich. With admiration to foreign policy Reagans carrying into actions especiallywith Mikhail Gorbachev showed a high approval of performance with the people.Reagan had the highest poll ratings for performance of any president since WorldWar 2. It appears that his leading helped to make the feeling of the countryto have a more reassured outlook on the future.References"Iran-Contra Affair," Microsoft Encarta 96 Encyclopedia 1993-1995. 1996Grolier Interactive Inc.Edition right of first publication 1992 by Houghton Mifflin Company.http//www.house.gov/joe/welcome.htmlhttp//www.reaganhome.com/taxcuts.htmlhttp//www.theatlantic.com/atlantic/election/connections/foreign/reagrus.htmHyland, W.G., ed., The Reagan Foreign Policy (1987).The American Heritage Dictionary of the English Language, ThirdThe Atlantic Monthly, February 1994 Reagan and the Russians Volume 273.The formulate Economic Committee reports on the Reagan Tax Cuts