DAILY NEWS President Reagan
Proposes Tax Cuts
and Spending
Reductions
NA
Which of the following makes the best subtitle for this article?
O A. Defense Spending the Exception
O O
B. Congress Expects to Balance Budget
c. Minimum Wage Hike Expected
D. Considers Cutting Military by Half

The best subtitle for the given title would be 'Defense Spending the Exception'.

Option: (A)

Explanation:

Though President Ronald Reagan opted to cut the tax rates down from 70% to 50% in 1981, it had been made clear already that the military spending would not be affected at all. Despite a 20% direct slash in the revenue generated by the contemporary government through income and general taxes, the budget allotted for defense and allied sectors was not subjected to cuts and reductions. The bold move of President Reagan of cutting the tax rates down by a whopping 20% came in line with the actions taken to reduce the continuously growing unemployment rate across the United States. Later as he got re-elected in the year 1986, he again opted to cut the tax rates down by another 22% and brought the general tax slab down to 28%. These tax cuts allowed the employment rate in the United States to shoot up greatly within a matter of 6 years and also allowed the economy to flourish surprisingly well.

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