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Scorpion4ik [409]
2 years ago
9

DAILY NEWS

History
1 answer:
andreev551 [17]2 years ago
3 0

Answer:

The best subtitle for the given title would be 'Defense Spending the Exception'.

Option: (A)

Explanation:

  • Though President Ronald Reagan opted to cut the tax rates down from 70% to 50% in 1981, it had been made clear already that the military spending would not be affected at all. Despite a 20% direct slash in the revenue generated by the contemporary government through income and general taxes, the budget allotted for defense and allied sectors was not subjected to cuts and reductions.
  • The bold move of President Reagan of cutting the tax rates down by a whopping 20% came in line with the actions taken to reduce the continuously growing unemployment rate across the United States.
  • Later as he got re-elected in the year 1986, he again opted to cut the tax rates down by another 22% and brought the general tax slab down to 28%.
  • These tax cuts allowed the employment rate in the United States to shoot up greatly within a matter of 6 years and also allowed the economy to flourish surprisingly well.
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