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Ronald Reagan Writes About "Economic Achievement" and a Tax Bill "To Increase Investment and Productivity" in the Business Community

Category: Presidents
Item Number: 14964
Price: $2,500

Ronald Reagan

Popular Republican president who oversaw the end of the Cold War. 1 page Typed Letter Signed, dated June 9, 1981 on White House stationery. Writing to a constituent, Reagan takes a firm stance against the "complete fiction" being publicized by reporters covering his administration's policies, and he assures his correspondent that he is taking care of the business community by generating a tax bill that will "increase investment and productivity...over the next three years." A letter that speaks to Reagan's role as a confident and no-nonsense leader. Reagan writes in part: "I don't know what to say about Jack Anderson. Frankly, he comes out with what he claims is sure fire material but too many times I know from the position I'm now in, it is complete fiction. I guess there's no way of stopping him. I appreciated your tax proposal about the 10% and tying the next two years to some level of economic achievement...We're convinced that the business community would not have the confidence in Congress to carry through on those other two increases that are necessary if this tax bill is to be what we want it to be and that is an incentive; a program to increase investment and productivity...I have come down now to 5-10-10 and believe we have a good chance of putting together a coalition which will support this. It won'd be easy and it'll be quite a fight, but we're going to fight." He then signs in his hand, "Ron." Jack Anderson was an investigative reporter known for uncovering political scandal and providing tough critiques of presidential administrations. Of the Reagan White House, Anderson had spoken out against "soft defense spending," accusing the administration of cutting back military funding despite its reputation for military building. In this letter, Reagan makes a level response to these accusations, firmly defining Anderson's stories as "complete fiction" before moving on to discuss more important matters of "economic achievement" which he planned to accomplish over the next three years of his term. The tax policy Reagan alludes to is the Economic Recovery Tax Act of 1981, also known as the ERTA or "Kemp-Roth Tax Cut." This act aimed "to amend the Internal Revenue Code of 1954 to encourage economic growth through reductions in individual income tax rates, the expensing of depreciable property, incentives for small businesses, and incentives for savings, and for other purposes". Included in the act was an across-the-board decrease in the marginal income tax rates in the United States by 23% over three years, with the top rate falling from 70% to 50% and the bottom rate dropping from 14% to 11%. This act slashed estate taxes and trimmed taxes paid by business corporations by $150 billion. At the time of the letter, Reagan was working hard with Congress to develop "a coalition which will support" the act -- and he commits to "quite a fight" on its behalf. Indeed, Reagan would get the bill passed successfull only two months after this letter, in August 1981. A letter that serves as a testament to Reagan's economic contributions to the United States and his determination in improving tax policies. With mailing folds and minor spots on right margin not affecting text. Bold signature. In very good condition.

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