Economic Policies of the Reagan Era

During the presidency of Ronald Reagan, significant shifts occurred in American political, economic, and social policies. Reagan's administration is often noted for its commitment to conservative principles, particularly in relation to tax cuts, military spending, and a skepticism of government intervention in the economy. One major event during this period was the passing of the Tax Reform Act of 1986, which aimed to simplify the tax code and reduce tax rates. Simultaneously, Reagan's foreign policy was characterized by a strong anti-communist stance, particularly towards the Soviet Union, which was seen as a primary antagonist in the Cold War.

Which of the following is a notable aspect of domestic policy during the Reagan era, reflecting the administration's economic priorities?