Question

What effect did the Revenue Act of 1926 have on Americans? It raised the estate taxes Americans had to pay. It increased the purchasing power of rich Americans. It provided tax relief in cases of natural disasters. It reformed the nation''s system of taxation.

Answer 1

"It increased the purchasing power of rich Americans" would be the best option from the list, since it practically eliminated the estate tax, which is how people get inheritances.

Answer 2

It increased the purchasing power of rich Americans.

The Revenue Act of 1926 reduced inheritance and personal taxes and eliminated the gift tax.

The reduction of taxes aided the wealth of the richest Americans. The 1920s' presidents were economically conservative and believed by providing relief and tax cuts to the top portion of the country, they would spend more and create more jobs.