USA HISTORY

Detailed explanation-1: -Reagan enacted lower marginal tax rates as well as simplified income tax codes and continued deregulation. During Reagan’s eight year presidency, the annual deficits averaged 4.0% of GDP, compared to a 2.2% average during the preceding eight years.

Detailed explanation-2: -A major goal of Reagan was to reduce the size of the government by shrinking the federal budget and cutting taxes. He proposed a new federal budget that called for cuts of $35 billion, mostly in social programs, including food stamps and federally-funded job-training centers.

Detailed explanation-3: -Upon taking office, Reagan argued that the United States faced a dire crisis, and that the best way to address this crisis was through conservative reforms. His major policy priorities were increasing military spending, cutting taxes, reducing non-military federal spending, and restricting federal regulations.

Detailed explanation-4: -Reagan believed in policies based on supply-side economics and advocated a laissez-faire philosophy, seeking to stimulate the economy with large, across-the-board tax cuts. Reagan pointed to improvements in certain key economic indicators as evidence of success.