Reykjavík Summit continued, and U.S.–Soviet relations – already strained by the failure of the Geneva Summit the previous year – were further strained by the Daniloff–Zakharov espionage affair. At Reykjavík, Reagan sought to include discussion of human rights, emigration of Soviet Jews and dissidents, and the Soviet invasion of Afghanistan. Gorbachev sought to limit the talks solely to arms control. The Soviets acceded to the "double-zero" proposal for eliminating INF weapons from Europe, as initially proposed by President Reagan in November 1981 (INF denoting "Intermediate-Range Nuclear Forces" as distinct from ICBMs, or intercontinental ballistic missiles). The Soviets also proposed to eliminate 50%
Presidency of Ronald Reagan programs and priorities that had dominated the national agenda since the 1930s. Domestically, the Reagan administration enacted a major tax cut, sought to cut non-military spending, and eliminated federal regulations. The administration's economic policies, known as "Reaganomics", were inspired by supply-side economics. The combination of tax cuts and an increase in defense spending led to budget deficits, and the federal debt increased significantly during Reagan's tenure. Reagan signed the Tax Reform Act of 1986 (which simplified the tax code by reducing rates and removing several tax breaks) and the Immigration Reform and Control Act of 1986 (which enacted sweeping changes