TAX REFORM ACT OF 1986
Law simplifying the income tax code, commonly called the second of two Reagan tax cuts. It reduces the top tax rate from 50% to 28%, and also increased the bottom tax rate from 11% to 15%. The act also taxed capital gains similar to an ordinary income. This was the first time in the United States the top tax rate was lowered and the bottom tax rate was raised at the same time.
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