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__CHANGING ECONOMY__
__Cutting Tax__: Reagan's first priority was a tax cut. + In October 1981, a 5% cut went into effect. + 10 % cuts in 1982 and 1983. The law closed loopholes that had allow some people to avoid paying their fair share of taxes. It simplified the tax system by reducing the number of income brackets that determine how much tax a person paid.The tax rate on the highest incomes dropped from 70% before Reagan took office to 50% in 1984, and to 28% after the 1986 tax reform.