Final Paper HIUS 445.docx - Trenton Adams May 6 2020 HIUS 445-D01 Ronald Reagan\u2019s 1981 Tax Reform and Its Impact on the American Economy 1 Ronald

Final Paper HIUS 445.docx - Trenton Adams May 6 2020 HIUS...

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Trenton Adams May 6, 2020 HIUS 445-D01 Ronald Reagan’s 1981 Tax Reform and Its Impact on the American Economy 1
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Ronald Reagan took office in 1981 after a landslide victory in the poles over Democratic incumbent Jimmy Carter. Defeating Carter in the 1980 Presidential Election would soon prove to be the beginning of new government reforms that would shape the United States for decades to come. National issues lay ahead of Reagan and his administration, but the success Reagan experienced came as a result of these issues. In the middle of an energy crisis and fresh off the heels of, in Reagan’s mind, four years of bad government, Reagan hit the ground running when he took office that January. One of the new reforms Reagan pushed was and economic tax reform. On August 13, 1981 President Reagan signed H.R. 4242, an act that would cut taxes and help jump start the American economy. Since then there have been many historians debate whether the act contributed to the economy’s improvement. Although the debate continues, evidence shows that the Economic Tax Act of 1981 was the first step of many in getting the American economy in a place to become prosperous and thriving during Reagan’s presidency. On April 28, 1981 President Reagan gave a speech to Congress explaining why it would be important to pass his Economic Tax Act. Just one month before this speech President Reagan was shot in Washington D.C. while leaving the Hilton Washington hotel. Regan narrowly survived the assassination attempt, and before his April 28 speech he received a warm welcome from members of Congress. Reagan began his speech by expressing to Congress how important it would be for them to pass the Economic Tax Reform in an effort to eliminate the burden of inflation off American citizens and restore the vitality of the American economy. 1 This speech would prove instrumental in getting the Tax Reform Act passed. One of President Reagan’s strengths was the way he could relate to people. A portion of this speech shows how Reagan uses this strength to this advantage. There were reports that his assassination attempt proved how sick 1 Miller Center, “April 28, 1981: “Address on the Program for Economic Recovery.” Accessed April 5, 2020. millercenter.org/the-presidency/presidential-speeches/april-28-1981-address-program-economic- recovery. 2
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society had become. Reagan uses this speech as an opportunity to praise certain individuals like astronauts, secret service agents, police officers, public servants, and the American people and their letters, well wishes, and prayers during his time of recovery to show that society is not sick. 2 This was refreshing to the American people who were used to government blaming them for issues the country faced. Reagan would move on to lay out his plan of how the Economic Tax Reform Act would reduce mortgage rates, curb unemployment, and how cutting taxes on small businesses will prevent them from closing and hurting the economy. It is important to understand how President Reagan related to American citizens and Congress. This speech would prove to be
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