What was Ronald Reagan’s economic plan in the 1980s with regards to taxes and military spendings?

Ronald Reagan's economic plan in the 1980s, often referred to as "Reaganomics," was based on a series of economic policies that were aimed at stimulating the American economy through supply-side interventions. The key components with regards to taxes and military spending can be summarized as follows:

1. Tax Cuts: Reagan implemented significant tax cuts, with the belief that lowering taxes for individuals and corporations would increase investment and productivity, leading to an overall growth in the economy. The Economic Recovery Tax Act of 1981 was one of his administration's major legislative achievements, which reduced the marginal tax rates for individual income across the board.

2. Deregulation: Alongside tax cuts, Reagan pursued a policy of deregulation, which involved reducing the role of government in the economy. This was expected to lead to a more efficient and less constrained market.

3. Military Spending: Reagan believed in a strong national defense and, as such, increased military spending significantly. This buildup was part of a strategic effort to contain the Soviet Union during the Cold War, which he believed would eventually contribute to the collapse of communism.

4. Budget Deficits: While Reagan's policies aimed at reducing the size of government, the massive increase in military spending combined with the tax cuts led to large federal budget deficits. Although supply-side economists argued that the economic growth stimulated by these policies would eventually lead to increased tax revenues and lower deficits, this took longer to materialize and the government debt grew substantially during the Reagan years.

Extra: To further understand Reaganomics and its impact, it is important to look into some of the concepts and theories behind the policies: