Ronald Reagan was elected President during a time of economic stress in America. Inheriting a struggling economy, Reagan formulated two new tax programs, the Economic Recovery Act of 1981 and the Tax Reform Act of 1986. Both Acts lowered the tax rates to give tax relief to all Americans (but were, admittedly, heavily skewed to tax relief for the exceptionally wealthy). The Economic Recovery Act of 1981 indexed tax rates for inflation. The Tax Reform Act of 1986 efficiently closed loopholes in the tax law, as well as lowering the tax rates again. President Ronald Reagan referred to the 1986 Act as "a second American Revolution for hope and opportunity." He believed that America’s economy, and the American taxpayer, were struggling under an imbalanced tax burden, unnecessary social spending, and excessive government regulation.

Reagan based his tax plan on what economic theory?

The major political parties in the United States, the Democratic Party and the Republican Party, are well recognized to the voting public. There are 50 additional political parties in the United States, however, that are active and offer candidates for President. These are collectively known as Third Parties. Third Parties serve an important role in the United States political system. These parties, formed by individuals with particular interests, issues, and ideologies, force the major parties to address new issues and can influence an election by taking votes from both major party candidates during an election year. Third Parties are also formed when individuals, dissatisfied with the major parties, split off from the major party. This type of Third Party is also called a Splinter Party. Third Parties have influenced American elections since 1912. There have been many well-known Third Party Presidential candidates.

The election of 1992 saw a third party candidate run for the Presidency. This candidate was one of the most successful third party candidates since 1912. This candidate did not win any Electoral College votes but did win a respectable percentage of the popular vote. Who was this candidate, what percentage of the popular vote did he win and what was the name of his party?

Reagan's supply-side economics was based on the theory that __________.

"In the days ahead I will propose removing the roadblocks that have slowed our economy and reduced productivity. Steps will be taken aimed at restoring the balance between the various levels of government. Progress may be slow, measured in inches and feet, not miles, but we will progress. It is time to reawaken this industrial giant, to get government back within its means, and to lighten our punitive tax burden. And these will be our first priorities, and on these principles there will be no compromise." Ronald Reagan, First Inaugural Address, 1981.

What was a key component of the economic program described by Reagan in the speech above?