tax code by reducing the number of tax brackets to four and slashing a number of tax breaks. The top rate was dropped to 28%, but capital gains taxes were increased on those with the highest incomes from 20% to 28%. The increase of the lowest tax bracket from 11% to 15% was more than offset by expansion of the personal exemption, standard deduction, and earned income tax credit. The net result was the removal of six million poor Americans from the income tax roll and a reduction of income tax liability at all income levels. The net effect of Reagan's tax bills was that overall tax burden held steady at roughly 19 percent of gross national product. Government spending Reagan prioritized tax cuts over spending cuts, arguing that lower revenue would eventually require lower spending. Nonetheless, Reagan was determined to decrease government spending and roll back or dismantle Great Society programs such as Medicaid and the Office of Economic Opportunity. In August 1981, Reagan signed the Omnibus Budget Reconciliation Act of 1981, which cut federal funding for social programs like food stamps, school lunch programs, and Medicaid. The Comprehensive Employment and Training Act, which had provided for the employment of 300,000 workers in 1980, was also repealed, and the administration tightened eligibility for unemployment benefits. Notably absent from the budget cuts was the Department of Defense, which saw its budget bolstered. Reagan experienced several legislative successes in his first year in office, but his attempts to cut federal domestic spending after 1981 met increasing congressional resistance. Spending on programs like Supplemental Security Income, Medicaid, the earned income tax credit, and Aid to Families with Dependent Children all increased after 1982. The number of federal civilian employees rose during Reagan's tenure, from 2.9 million to 3.1 million. Reagan's policy of New Federalism, which sought to shift the responsibility for most social programs to state governments, found little support in Congress. In 1981, OMB Director David Stockman won Reagan's approval to seek cuts to Social Security in 1981, but this plan was poorly-received in Congress. In 1982, Reagan established the bipartisan National Commission on Social Security Reform to make recommendations to secure the long-term integrity of Social Security. The commission rejected Social Security privatization and other major changes to the program, but recommended expanding the Social Security base (by including exempt federal and nonprofit employees), raising Social Security taxes, and reducing