As President of the United States, Ronald Reagan had four major achievements that defined his presidency. These achievements made his presidency one of the best in US history. He pressed congress to lower taxes. Taxes have always been a major part in American history. America has had taxation dating back to the colonial era. Most would argue unfair taxes are what started the Revolutionary War. During the early 1980s, income tax was set at 50% for anyone making over $5,720 a year. Reagan realized this was devastating to the American economy, so he called for a change. Reagan accomplished lowering taxes this by pressuring congress to pass an act known as the Tax Reform Act of 1986. This act alone lowered the top income tax from 50% to 28%. The bottom tax rate was raised form 11% to 15%. .
The Tax Reform of 1986 was the first time in American tax history that both the top and bottom rate were increased at the same time (BookCaps, Chapter 4). This act eliminated fifteen levels of income taxes to only four, which created an average tax for four levels of income. The act also mandated that capital gains, a profit that results from a movement of a capital asset, for example stocks, bonds, or real estate, to the actual value of the asset, also be taxed at the equal rate as regular income. The lowering of the taxes and reduction of taxation levels allowed the American people to keep more of the money they made. Instead of having to give most of it away in taxes, they were able to spend more, allowing more money to be collected in sales taxes by the government and thus increasing economic levels. The philosophy behind Reagan's decision is simple. If people have more money to spend instead of having to give it to the government, they spend money on resources they need, and in greater quantities and more regularly, allowing sales taxes to pay the government. Once the taxes were lowered, economy boomed, the quality of life improved, and the American people were happy.
