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How Did the Economic Recovery Tax Act of 1981 Most

Question 75

Multiple Choice

How did the Economic Recovery Tax Act of 1981 most benefit the smallest but richest fraction of the American population?


A) It eliminated the distinction between earned and unearned income.
B) It reduced the maximum tax on all income by 40 percent.
C) It mandated huge spending cuts that affected many cultural and social programs.
D) It raised the maximum capital gains tax by 8 percent.

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