Tax Reform Act of 1986

The Tax Reform Act of 1986 (TRA86) was a major overhaul of the United States federal income tax system. It was signed into law by President Ronald Reagan on October 22, 1986, and went into effect on January 1, 1987.

The TRA86 was the first major tax reform in the United States since the Revenue Act of 1964. It was designed to simplify the tax code, reduce tax rates, and promote economic growth.

The TRA86 made a number of significant changes to the tax code. It reduced the number of tax brackets from 15 to 5, and lowered the top marginal tax rate from 50% to 28%. It also eliminated many deductions and exemptions, and created a new system of personal exemptions.

The TRA86 had a significant impact on the U.S. economy. It helped to reduce the federal budget deficit, and it promoted economic growth. However, it also increased the tax burden on the middle class, and it made it more difficult for low-income families to claim the earned income tax credit.

The TRA86 remains the most significant tax reform in U.S. history. It has had a lasting impact on the tax code, and it continues to shape the way that Americans pay taxes.

Here are some additional details about the TRA86:

* It was the first major tax reform since the Revenue Act of 1964.
* It was signed into law by President Ronald Reagan on October 22, 1986, and went into effect on January 1, 1987.
* It was designed to simplify the tax code, reduce tax rates, and promote economic growth.
* It made a number of significant changes to the tax code, including reducing the number of tax brackets from 15 to 5, and lowering the top marginal tax rate from 50% to 28%.
* It also eliminated many deductions and exemptions, and created a new system of personal exemptions.
* The TRA86 had a significant impact on the U.S. economy. It helped to reduce the federal budget deficit, and it promoted economic growth. However, it also increased the tax burden on the middle class, and it made it more difficult for low-income families to claim the earned income tax credit.
* The TRA86 remains the most significant tax reform in U.S. history. It has had a lasting impact on the tax code, and it continues to shape the way that Americans pay taxes.