Question

DAILY NEWS

Answer 1

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.