Reagan's economic legislation

Question 1

Executive Order setting up the President’s Economic Policy Advisory Board

Answer 1

2nd March1981

Sets up the EAB with economic experts from outside the government, advising directly to the President as well as the CEA (Council of Economic Advisors)

Question 2

Executive Order setting up the President’s Commission on Housing

Answer 2

16th June 1981

Set up to investigate all aspects of housing, including how it should be financed, but mainly to find ways of saving money on federal low cost housing schemes

Question 3

Economic Recovery Tax Act (ERTA)

Answer 3

13th August 1981

Cuts marginal income tax by 23% over three years, links the tax bands to inflation and offers other incentives, such as being able to set up Independent Retirement Accounts (IRAs)

Question 4

Omnibus Budget Reconciliation Act (ORA)

Answer 4

13th August 1981

Proposes a variety of tax cuts that will take $35bn out of federal spending; the initial bill presented by the White House had proposed $45bn worth of cuts

Question 5

Tax Equity and Financial Responsibility Act (TEFRA)

Answer 5

3rd September 1982

Makes changes to the budget in response to the economic situation, tightening up tax rules, especially for businesses; it also temporarily raises taxes on cigarettes and the telephone service

Question 6

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Answer 6

7th April 1986

Revises the budget in many minor ways to save the federal government money and to move costs to state or private bodies: the most significant change shifts the responsibility for many healthcare payments from the federal government to the employer

Question 7

Tax Reform Act

Answer 7

22nd October 1986

Revises the tax codes, reducing the number of tax brackets; is supposed to close a lot of tax evasion loopholes and ease the pressure on poorer families