On August 13, 1981, at his California home Rancho del Cielo (above),
Ronald Reagan signs the Economic Recovery Tax Act (ERTA), a
package of tax and budget reductions that set the tone for his
administration’s trickle-down economic policy.

During his campaign for the White House in 1980, Reagan argued
on behalf of “supply-side economics,” the theory of using tax
cuts as incentives for individuals and businesses to work and
produce goods (supply) rather than as an incentive for consumers
to buy goods (demand)..