Reaganomic Flashcards
1
Q
What were Reagan’s aims (4)
A
- Tax Cuts
- Reduce the size and the role of the government
- Reduce Regulation of industry and business
- Build up America’s Cold War defences
2
Q
What were Reagan’s Tax cuts intended to do
A
Revive economy by encouraging people to work harder and buy more
3
Q
Reduce the size and role of the government (3)
A
- ‘Government doesn’t solve problems, it subsidises them.’
- Cutting the size and spending of government (especially on welfare)
- save money and reduce welfare dependency.
4
Q
Build up America’s Cold War defences
A
This would be expensive, but said ‘defense is not a budget item’…
5
Q
Reduce regulation of industry and business (4)
A
- To liberate business
- allow capitalism to flourish,
- make people more prosperous
- enable them to pay more taxes which would decrease the federal deficit
6
Q
ERTA date
A
1981
7
Q
ORA date
A
1981
8
Q
TEFRA date
A
1982
9
Q
COBRA date
A
1986
10
Q
Tax Reform Act date
A
1986
11
Q
ORA (2)
A
Omnibus budget Reconciliation Act
- Proposed variety of tax cuts that will take $35 billion out of federal spending
- Initial bill proposed $45 billion worth of cuts
12
Q
ERTA (3)
A
Economic Recovery Tax Act
- Cuts marginal income tax by 23% over 3 years
- Links the tax bands to inflation
- Offers other incentives
13
Q
TEFRA
A
Tax Equity and Financial Responsibility Act
- Changes to budget in response to economic situation
- Tightening tax rules, especially for businesses
- Temporarily raises taxes on cigarettes and the telephone service
14
Q
COBRA (3)
A
Consolidated Omnibus Budget Reconciliation Act
- Revises the budget in many minor ways to save federal government money
- Move costs to state or private bodies
- MOST SIGNIFICANT, shifts responsibilities for many healthcare payments from the federal government to the employer
15
Q
Tax Reform Act (3)
A
- Revise tax codes
- Reduce number of tax brackets
- Supposed to close tax evasion loopholes and ease pressure on poorer families
