the effect of Reagans economic policies Flashcards
1
Q
What was the Economic Recovery Tax Act (ERTA) 13 Aug 1981
A
- linked tax bands to inflation
-cut marginal income tax by 23% for 3 years
-business tax rates were cut/reduced
-tax breaks offered, skewed to favour small, innovative businesses
2
Q
When was the ERTA?
A
13th august 1981
3
Q
what was an impact./result of ERTA?
A
Highest income tax bracket fell from 70% to 50%, lowest bracket fell from 14% to 11%
4
Q
what was the omnibus budget reconciliation act? (ORA) 3 Aug 1981
A
- proposed a variety of budget cuts that would take $35 billion out of federal spending
5
Q
when was the ORA?
A
13th august 1981
6
Q
what did the ORA originally propose?
A
