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Reagan signs the Economic Recovery Tax Act of 1981

President Reagan signed the Economic Recovery Tax Act (ERTA), enacting a major package of income-tax cuts—including a phased reduction of individual marginal rates.

Reagan signs the Economic Recovery Tax Act of 1981

The law implemented Reagan’s supply-side tax policy, significantly reshaping federal fiscal policy and influencing debates over economic growth, deficits, and income distribution for the decade.

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