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

The Reagan Tax Cuts and Foreign Policy     During the 1980s President Ronald Reagans (our 40th president from1981 to 1989) domestic policy of a substantial value geld led to greatly increaseeconomic prosperity for our country. During Reagans administration markedchanges were made to the evaluate code and economic statistics showed a major changefor the better. However, at the same time, the Democrats controlled the Congressand continued increased spending against Reagans wishes. The Joint EconomicCommittee stated that an across-the-board tax vitiated was not new. In the 20s theMellon tax ablations were implemented by Secretary of Treasury Andrew Mellon duringthe Administrations of Hoover, Harding, and Coolidge. In the 60s Kennedyintroduced tax cuts. In both instances the decrease of high marginal tax ratessomehow increased tax payments by the rich. Perhaps a foreshadow of things tocome. Debates were raging over the Reagan tax cuts, known as the EconomicRecov ery Tax Act of 1981 (or, ERTA). This bout 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 wager 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 agiveaway to the rich, because their tax payments would collapse. Reagan workedhard and skillfully with the congress to obtain legislation to stimulateeconomic 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 tried to engine 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 in 1983 anothe r 10%cut. Reagans call for extensive 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 term the inflation rate wasat -5.7%, unemployment was at1.4%, have-to doe with rates were at -.7, and the grossna... ... The aides had then illegallygiven some of the arms money 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 respect to foreign policy Reagans performances especiallywith Mikhail Gorbachev showed a high compliment of performance with the people.Reagan had the highest poll ratings for performance of any president since WorldWar 2. It appears that his leadership helped to make the feeling of the countryto have a more self-assured outl ook on the future.References"Iran-Contra Affair," Microsoft Encarta 96 Encyclopedia 1993-1995. 1996Grolier Interactive Inc.Edition copyright 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 Joint Economic Committee reports on the Reagan Tax Cuts