How Did Ronald Reagan Reduce Spending

Reagan had much more success in implementing his taxation policy than he did reducing spending. As mentioned earlier, during Reagan’s presidency the top federal marginal tax rate was reduced from 70 % to 28 %. Furthermore, the corporate tax rate was reduced from 48 % to 34 %. Individual tax brackets were Individual tax brackets were also indexed for inflation. Reagan didn’t just cut taxes, however. There were also some taxes that went up under Reagan such as Social Security taxes and excise taxes. Some tax deductions were also reduced or eliminated (which, under Grover Norquist’s pledge signed by the majority of current Republicans in the House of Representatives, counts as a tax increase). Overall, Reagan succeeded in lowering tax rates and