Tax Reform Act of 1986 2020-06-27 08:00:00

Tax Reform Act of 1986

The Tax Reform Act of 1986 was signed into legislation by President Ronald Regan. It was meant to simplify the tax code and stimulate the economy. The law lowered the maximum rate on ordinary income (earned income) from 50% to 28% while raising it on long-term capital gains (unearned income) from 11% to 15%.


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