Pros And Cons Of Proposition 13

The rise of conservatism began with the defeat of Barry Goldwater in the hands of Lyndon B. Johnson and continued with Nixon and Ford’s presidencies. The groups that supported conservatism also opposed: big gov., liberalism, gun control, feminism, gay rights, welfare, affirmative action, sex permissivements, abortion, and drug use. They believed in traditional values of family and faith, work ethic, and national security all while keeping the government limited in their power. In California, voters passed Proposition 13 due to increasing property taxes in the state. Proposition 13 helped cut property taxes in CA. Many supported Arthur Laffer and his belief that tax cuts would increase the government’s revenue. Jack Kemp and William Roth proposed

This would help increase production, jobs, and economic prosperity. He also urged for gov. Spending during economic turmoil to boost consumer income and demand, this was widely supported among Democrats. Many critics claimed this plan to be similar to Hoover’s “trickle-down economics”, which advocated reducing taxes on businesses and the wealthy. Congress passed the Economic Recovery Act of 1981, which included a 25% income tax decrease over a period of three years. This tax relief helped upper-class Americans. Under the Reagan Administration, the tax rate was reduced further to 28% all the while investors were investing at the most $2000 yearly in IRAs (Individual Retirement Accounts) w/o paying taxes. Republicans and conservative Democrats (boll weevils) cut $40 billion from domestic aid programs (food stamps, student loans, mass transportation), but they increased heavily in the military. Despite the cuts to aid programs, he help strengthen Social Security by increasing the amount paid, raising the age for benefits to 67, and taxing some benefits given to upper-class. The Reagan administration reduced business regulations through banks, trusts, and environmental protection, which in turn helped to make the government have a smaller role in people’s lives. The American automobile industry was still hurting from the oil embargo of 1967 with Americans trading in their gas-consuming American cars for more fuel-efficient cars from Asia. To try to help the struggling automobile industry, Reagan reduced regulations on emissions and auto safety, making cheaper to make and sell (think of the Volkswagen scandal). Reagan continued his pro-business agenda with first firing striking air traffic controllers and decertified the union PATCO (Professional Air Traffic Controllers Organization). Many businesses followed this up by hiring strikebreakers during strikes.