Reaganomics refers to the economic policies implemented by President Ronald Reagan in the 1980s, which focused on reducing taxes, government regulations, and spending to stimulate economic growth.
Reaganomics introduced a major overhaul of the tax system, including a decrease in the number of tax brackets from 14 to 2 and a reduction in the top marginal tax rate from 70% to 28%. This resulted in a significant decrease in taxes for the wealthy.
Reaganomics defined wealthy as individuals earning above $85,600 or couples earning above $143,800, which was the top marginal tax bracket during his presidency. This bracket included the top 1.5% of income earners.
Yes, Reaganomics was designed to benefit the wealthy by reducing their tax burden and stimulating economic growth through trickle-down economics. However, the effectiveness and fairness of this approach are still debated.
There is evidence that Reaganomics contributed to income inequality, as the top 1% of income earners saw a significant increase in their wealth while the middle and lower classes saw little to no growth. This trend has continued in the decades since Reagan's presidency.