1981 Economic Recovery Act

One of the most remarkable demonstrations of presidential leadership in modern history. ~ The Washington Post

Undoubtedly, the most significant event at the ranch was President Reagan’s signing into law the largest tax cut in American history. The 1981 tax legislation reduced taxes across the board by 26 percent over a three-year period. The Washington Post termed the Reagan tax cut "one of the most remarkable demonstrations of presidential leadership in modern history."

Together with Reagan’s anti-inflation program, the tax cut was the centerpiece of the "Reagan Revolution." Its effects proved to be momentous. After a brief recession in 1982, the U.S. economy turned around in 1983 and has continued to grow ever since. The "Reagan Boom," as columnist James Glassman termed it, has produced widespread prosperity and even helped to create a budget surplus in recent years.