Cold War to the Kremlin's military and political concessions, Reagan agreed to renew talks on economic issues and the scaling-back of the arms race. The first summit was held in November 1985 in Geneva, Switzerland. At one stage the two men, accompanied only by an interpreter, agreed in principle to reduce each country's nuclear arsenal by 50 percent. A second summit, was held in October 1986, Reykjavík, Iceland. Talks went well until the focus shifted to Reagan's proposed Strategic Defense Initiative, which Gorbachev wanted eliminated. Reagan refused. The negotiations failed, but the third summit in 1987 led to a breakthrough with the
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