How Four Decades of Tax Cuts Fueled Inequality: James B. Steele (1)

This story is a partnership between the Center for Public Integrity, a newsroom that investigates inequality, and Bloomberg Tax.

As a dense fog rolled over his California ranch, Ronald Reagan strolled to a table set up outside his adobe farmhouse and flashed photographers a radiant smile.

The president had much to smile about. Stacked on the table, awaiting his signature, was ERTA, the 185-page Economic Recovery Tax Act of 1981 that fulfilled his campaign promise to cut taxes in a big way.

The beneficiaries were largely high-net-worth individuals and corporations. What followed was a $750 billion hole in the federal ...