Examples of Tax Cuts in the following topics:
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- His promise of welfare reform in the 1992 presidential campaign and its subsequent enactment epitomized the New Democrat position, as did his 1992 promise of a middle-class tax cut and his 1993 expansion of the Earned Income Tax Credit for the working poor.
- This Act raised taxes on the wealthiest 1.2% of taxpayers while cutting taxes on 15 million low-income families.
- It also made tax cuts available to 90% of small businesses.
- Overall, the top marginal tax rate was raised from 31% to 40% under the Clinton administration.
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- Reagan implemented policies based on supply-side economics and advocated a classical liberal and laissez-faire philosophy, seeking to stimulate the economy with large, across-the-board tax cuts.
- Citing the economic theories of Arthur Laffer, Reagan promoted the proposed tax cuts as potentially stimulating the economy enough to expand the tax base, offsetting the revenue loss due to reduced rates of taxation, a theory that entered political discussion as the Laffer curve.
- The Tax Reform Act of 1986 was another bipartisan effort championed by Reagan, further reduced the top rate to 28%, raised the bottom bracket from 11% to 15%, and, cut the number of tax brackets to four.
- Despite the fact that TEFRA was the "largest peacetime tax increase in American history," Reagan is better known for his tax cuts and lower-taxes philosophy.
- Along with Reagan's 1981 cut in the top regular tax rate on unearned income, he reduced the maximum capital gains rate to only 20% – its lowest level since the Hoover administration.
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- In August 1981, after negotiations with the Republican-controlled Senate and the Democratic-controlled House proved to be fruitless, President Reagan signed the largest tax cuts in American history into effect at his California ranch.
- This bipartisan measure lowered income taxes significantly, with the top personal tax bracket dropping from 70% to 28% over the course of seven years.
- The net effect of all Reagan-era tax bills resulted in a 1% decrease of government revenues (as a percentage of GDP), with the revenue-shrinking effects of the 1981 tax cut (-3% of GDP) and the revenue-gaining effects of the 1982 tax hike (~+1% of GDP).
- However, Congress was reluctant to follow Reagan's proposed cuts in domestic programs.
- Reagan cut the EPA's budget by 22%, and his director of the EPA, Anne M.
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- To pay for these and other government programs, and to make up for revenue lost due to the Depression, Hoover agreed to roll back several tax cuts that his Administration had enacted on higher-bracket incomes.
- Harding and Calvin Coolidge) had proposed and enacted numerous tax cuts, which cut the top income tax rate from 73% to 24%.
- Congress was desperate to increase federal revenue, and in one of the largest tax increases in American history, the Revenue Act of 1932 raised income tax on the highest incomes from 25% to 63%.
- The estate tax was doubled and corporations were taxed at a higher rate of 13.75%.
- Also, a "check tax" was included that placed a 2-cent tax (equal to more than 30 cents in today's economy) on all bank checks.
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- Reagan’s primary goal upon taking office was to stimulate the sagging economy while simultaneously cutting both government programs and taxes.
- In other words, proponents of “trickle-down economics” promised to cut taxes and balance the budget at the same time.
- When Reagan proposed a 30% cut in taxes to be phased in over his first term in office, Congress balked.
- Opponents argued that the tax cuts would benefit the rich and not the poor, who needed help the most.
- Despite the fact that TEFRA was the "largest peacetime tax increase in American history," Reagan is better known for his tax cuts and lower-taxes philosophy.
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- This Act cut taxes for 15 million low-income families, made tax cuts available to 90% of small businesses, and raised taxes on the wealthiest 1.2% of taxpayers.
- The cap was repealed on Medicare, taxes were raised 4.3 cents per gallon on transportation fuels, and the taxable portion of Social Security benefits was increased.
- Increased tax revenue and budget cuts turned the annual national budget deficit from close to $290 billion in 1992 to a record budget surplus of over $230 billion in 2000.
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- Several factors, including the ailing economy and Bush's tax increases, led to Republican defeat in the 1992 elections.
- Conservative Republicans point to Bush's 1990 agreement to raise taxes in contradiction of his famous "Read my lips: no new taxes" pledge as reason for his defeat.
- In raising taxes, Bush alienated many members of his conservative base, losing their support for his re-election.
- Bush had raised taxes in an attempt to address an increasing budget deficit, which has largely been attributed to the Reagan tax cuts and military spending of the 1980s.
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- Reagan’s policies of cutting taxes and increasing defense spending in relation to the Cold War had exploded the federal budget deficit, making it three times larger in 1989 than when Reagan took office in 1980.
- However with Republicans believing that the best way was to cut government spending, and Democrats convinced that the only way would be to raise taxes (particularly on the rich), Bush faced problems when it came to consensus building.
- In the wake of the struggle with Congress, Bush was forced by the Democratic majority to raise tax revenues; as a result, many Republicans felt betrayed because of Bush's "no new taxes" pledge.
- Angered Republican congressmen defeated Bush's proposal which would enact spending cuts and tax increases that would reduce the deficit by $500 billion over five years.
- The Act increased the marginal tax rate and phased out exemptions for high-income taxpayers.
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- The plan also includes medical spending cuts and taxes on insurance companies that offer expensive plans.
- The costs of these provisions are offset by taxes, fees, and cost-saving measures, such as new Medicare taxes for those in high-income brackets, taxes on indoor tanning, cuts to the Medicare Advantage program in favor of traditional Medicare, and fees on medical devices and pharmaceutical companies.
- There is also a tax penalty for those who do not obtain health insurance, unless they are exempt due to low income or other reasons.
- Congress's taxing authority.
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- Such incentives included adjusting income tax and capital gains tax rates.
- Reagan theorized that cutting tax rates would actually increase tax revenues because the lower rates would encourage people to work harder in order to be able to keep more of their money.
- Reagan called for a drastic cut in "big government" programs and pledged to deliver a balanced budget for the first time since 1969.
- In the Republican primaries, Bush famously called Reagan's economic policy "voodoo economics" because it promised to lower taxes and increase revenues at the same time.
- They favored the tax revolts that swept the nation in the late 1970s under the leadership of predominantly older, white, middle-class Americans, which had succeeded in imposing radical reductions in local property and state income taxes.