CLEP US History II

Answer: B - Under the economic policy of President Ronald Reagan, the top tax rate was slashed by a whopping 42%, dropping from 70% to 28% by the end of his presidency. He offset some of the difference by raising income tax rates on low-income earners, which only caused income inequality to grow. Corporations began outsourcing jobs to avoid taxes and stringent regulation. Large trade deficits began to amass, and defense spending was increased by over $100 billion. All of these practices caused the national debt to triple during Reagan’s two terms.