Upon Harding’s death in San Francisco on the evening of August 2, 1923, the Harding–Coolidge administration gave way to that of Coolidge alone. He purified a Cabinet that was engulfed in corruption while concurrently lobbying for the 1924 and 1926 Revenue Acts. In combination, those two statutes reduced the top combined tax rate from 58% to 25%, compared to 73% when Harding took office in 1921.
The permanent reduction of onerous taxes makes avoidance less appealing and stimulates economic growth. Thus, total individual tax receipts ballooned by 70% from 1924 to 1928; and, throughout the 1920s, the share of income taxes paid by earners of over $100,000 a year doubled. Meanwhile, Coolidge held spending constant, allowing him to eliminate nearly a quarter of the national debt and leave it fully 29% smaller than it was when Harding took office.