Ronald Wilson Reagan

Birth-Death: (1911 -     ) Term: (1981-1989 )

Reagan's presidency is signified by the virtual collapse of the Soviet Union. Although the official dismemberment did not come until 1991, with Gorbachev¹s policies of glasnost and perestroika, it was clear that the communistic regime of the Soviet Union had ended for good.

Major Events with Ronald Reagan

1986 - Tax Reform Act

    The sixteenth amendment, the amendment that legalized income tax, was generally accepted because it was a progressive tax. As the taxpayer's earnings increased the tax they paid increased also. The tax reform of 1986 extended the range of progressive tax rates from 14 percent up to 70 percent. The 1986 law drastically simplified tax rates: only three tax brackets were in use. However, the way the act worked, people with incomes of more than $175,000 paid less in taxes than people with incomes of less than $175,000.

1987 - Stock Market Crash

    On October 19, 1987, the stock market had the worst price collapse since 1929. The Brady Commission Report released a year later stated that the immediate fall in stocks was due to the use of computerized program trading in stocks by large investors. Howver, by 1988 the United States was showing signes of a growing economy.

1988 - Thawing of the Cold War

    When Mikhail Gorbachev took over the reigns of power in the U.S.S.R. in 1985, he began a program of westernization. Through perestroika and glasnost he started to rebuild the Soviet Union. He also showed signs of stoppping the spread of Communism. President Reagan explored the opportunities of peace with the Soviets and president Bush continued this policy.