Tax Reform Act of 1986

E50001

The Tax Reform Act of 1986 was a landmark U.S. federal law that overhauled the tax code by lowering rates, broadening the tax base, and eliminating many deductions and shelters.


Statements (49)
Predicate Object
instanceOf United States federal statute
tax reform law
affects alternative minimum tax
capital gains taxation
corporate income tax
corporate tax preferences
depreciation rules
individual income tax
itemized deductions
passive activity losses
tax shelters
amends Internal Revenue Code of 1954
associatedWith Reagan administration
broadens tax base for corporations
tax base for individuals
changes capital gains tax treatment
considered landmark tax reform in the United States
country United States
creates Internal Revenue Code of 1986
eliminates investment tax credit
many corporate tax shelters
many individual tax shelters
enactedBy 99th United States Congress
increases personal exemptions
standard deduction
introduces broader individual alternative minimum tax
jurisdiction United States federal government
legislativeProcess bipartisan negotiation in Congress
limits itemized deductions
passive activity loss deductions
longTitle An Act to reform the internal revenue laws of the United States
modifies depreciation schedules
policyGoal increase perceived fairness of the tax system
maintain overall federal revenue levels
reduce economic distortions from tax preferences
policyType revenue-neutral tax reform
primaryObjective broaden the tax base
eliminate many tax shelters
lower statutory tax rates
simplify the federal income tax code
publicLawNumber Public Law 99-514
reduces number of individual income tax brackets
shortTitle Tax Reform Act of 1986
signedBy Ronald Reagan
signingDate 1986-10-22
topCorporateRateAfterReform 34 percent
topCorporateRateBeforeReform 46 percent
topIndividualRateAfterReform 28 percent
topIndividualRateBeforeReform 50 percent


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