Question

Read the excerpt from a presidential address given by Calvin Coolidge in 1925.

I have been unable to determine how reduction in taxes is injurious [harmful] to business. Each tax reduction has been followed by a revival of business. If there is one thing above all others that will stimulate business, it is tax reduction. If the government takes less, private business can have more. If constructive economy in federal expenditure can be assured, it will be a stimulation to enterprise and investment.

Which would be the best headline for this presidential address?

Tax Reductions Remain Unpopular in the 1920s
Tax Increases Are the Solution to 1920s Economic Problems
Tax Increases Have No Supporters in the 1920s
Tax Reductions Lead to Economic Growth in the 1920s

Answer 1

The correct option is this: TAX REDUCTION LEAD TO ECONOMIC GROWTH IN THE 1920S.
In the 1920s, the people of US and the businessmen paid a lot of taxes to the government and this discouraged investors from starting new businesses while the existing businesses were struggling not to close down. Because of this, the government started looking for a way of solving the challenge and it was finally decided that the taxes that are paid to the government be reduced in order to lessen the tax burden placed on the citizens of US. Tax reduction brought about economic growth.

Answer 2

The correct answer is:

D. Tax Reductions Lead to Economic Growth in the 1920s.

This would be the best headline for the presidential address.

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