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Unformatted text preview: accelerated depreciation that a company could deduct. It also provided for increased penalties for noncompliance with tax laws. The overall tax rate decrease greatly influenced economic growth. Families kept more money in their pockets and therefore had greater purchasing power. There was in increased spirit of enterprise, leading to higher rates of growth in income, output and employment. Economic incentives for work, savings and investment were increased. Overall optimism in the economy was restored via the increased prosperity. As a result of the favorable economic conditions and perfectly timed fiscal policies, President Reagans approval rating soared to 68%....
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- Spring '08