"In this present crisis, government is not the solution to our problem; government is the problem. From time to time we've been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else?" — Ronald Reagan, First Inaugural Address, January 20, 1981
Which legislative outcome most directly followed from the philosophy in this passage?
- A
The creation of the Environmental Protection Agency
- Bcheck_circle
The Economic Recovery Tax Act of 1981, which slashed marginal income tax rates
- C
The Glass-Steagall Act separating commercial and investment banking
- D
The Wagner Act protecting union organizing rights
Explanation
The 1981 ERTA (Kemp-Roth) cut top marginal rates from 70% to 50% and was the signature legislative expression of Reagan's anti-government, supply-side philosophy.