The Tax Policy Tug-of-War

This chapter examines the political complexities and controversies surrounding tax cuts during the Reagan administration, focusing on the Economic Recovery Tax Act of 1981. It highlights the bipartisan efforts and evolving political dynamics, particularly the impact on various socioeconomic classes against a backdrop of rising unemployment and economic recession. The narrative explores the long-term implications of these tax policies, the ideological shifts within the Republican Party, and their influence on America’s social fabric.