QuestionAugust 18, 2025

Why did Reagan's tax cuts not reduce the national debt? Because inflation erased the benefits Because tax rates were too low Because military and interest spending remained high Because states refused to comply

Why did Reagan's tax cuts not reduce the national debt? Because inflation erased the benefits Because tax rates were too low Because military and interest spending remained high Because states refused to comply
Why did Reagan's tax cuts not reduce the national debt?
Because inflation erased the benefits
Because tax rates were too low
Because military and interest spending remained high
Because states refused to comply

Solution
4.6(190 votes)

Answer

Because military and interest spending remained high Explanation Reagan's tax cuts aimed to stimulate the economy, but high military spending and interest on the national debt offset any potential savings from reduced tax revenues. Inflation did not erase benefits directly; rather, it was the combination of increased expenditures that maintained or raised the national debt.

Explanation

Reagan's tax cuts aimed to stimulate the economy, but high military spending and interest on the national debt offset any potential savings from reduced tax revenues. Inflation did not erase benefits directly; rather, it was the combination of increased expenditures that maintained or raised the national debt.
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