The bill by President George W. Bush EGTRRA called for large tax cuts similar to Economic Recovery Act of 1981 by President Reagan.
The assumptions behind the theory used as a basis by President Reagan to lower the taxes of big companies was Laffer's theory. This states that when an industry is charged with more tax, it suppresses their capability to produce more products. Since more products mean more tax. If the tax collection is lowered, this will result in higher production and is good for the country's economy. Also, they thought that the previous tax collection is more than what the government needs.
<u> B. A government's powers should be separated among different branches of government.</u>
Baron de Montesquieu was a French political philosopher often remembered for his work of a treatise on political theory, called <em>The Spirit of the Laws</em> (1748), in which he established and promoted the idea that the government should be separated into three different branches: the legislative, the executive, and the judicial. All of which should rule under the law and must check each other’s power in order to prevent corruption or abuses of power.
The bourbon democrats refers to a group of people from democratic party who support laissez-faire capitalism.
At that time, several bourbon democrats in Louisiana develop a relationship with important people from railroads and banking industry. They are allegedly help those people to hide their taxes.
They also leverage their power to illegally run Louisiana State Lottery Company and stole a lot of money from the ticket buyers
