What was one of the key outcomes of the Revenue Act of 1964?

The Revenue Act of 1964 was a significant piece of legislation that aimed to stimulate the U.S. economy during a time of slow growth. One of the key outcomes of this act was the reduction of personal income tax rates. By cutting these rates, the government aimed to increase disposable income for individuals, thereby encouraging consumer spending. This injection of spending was expected to help boost economic activity and lower unemployment rates.

The act also included provisions that lowered corporate tax rates, which were intended to incentivize business investment and expansion. However, the primary focus on reducing personal income tax rates has had a lasting impact on fiscal policy and is considered a significant moment in the movement towards supply-side economics.

In contrast, the other options do not reflect the central goals of the Revenue Act of 1964. An increase in tax rates for businesses or tariffs on foreign goods would not align with the act’s purpose of stimulating economic growth. Similarly, while there may have been some aspects of regulatory changes during this period, the primary feature of the Revenue Act was its focus on income tax reductions.