Tax Reform Act of 1986

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Tax Reform Act of 1986

A 1986 law involving a major overhaul of the US tax code.

Tax Reform Act of 1986

Legislation in the United States dictating the reduced marginal tax rates, the number of tax brackets, and the deductions and tax shelters that individuals can have. It also increased corporate tax rates and equalized capital gains tax and income tax rates. It was designed to be revenue neutral; this was accomplished by reducing deductions to offset the lower tax rates. It also changed incentives; for example, it increased the home mortgage interest deduction to encourage home ownership. While proponents hail this Act as a major tax cut, critics maintain that it did little to accomplish its main goal of simplifying the tax code. See also: Economic Recovery Tax Act of 1981.

Tax Reform Act of 1986

Tax legislation that significantly reduced marginal income tax rates for individuals and corporations as well as curtailed many deductions and eliminated numerous preference items. The Act was designed to be revenue-neutral and, in general, it benefited high-income and low-income individuals and corporations that do not spend large amounts of money on long-lived equipment. Although an original goal had been to simplify the tax system, no simplification was evident in the final legislation.
References in periodicals archive ?
Leading the tax reform track in the Senate is Senate Finance Committee Chairman Orrin Hatch (R-UT), who has indicated his preference for moving a comprehensive tax reform package as opposed to a corporate-only tax reform bill.
Senator Wyden's most recent 2011 tax reform bill proposed to lower the corporate tax rate to 24 percent and broaden the tax base.
While these proposals are often casualties of the numerous compromises and deals that make up the normal legislative process, in 2013 several major tax reform bills were introduced in state houses around the country.
Because sufficient time has been devoted in formulating the tax reform bill, expedited consideration, as is seen in existing fast-track frameworks, is not as problematic.
The most recent effort ended earlier this year, when the Governor withdrew the revised oil tax reform bill that he had submitted at the beginning of the special legislative session.
It has been a long time since financial accounting has been a topic of discussion in Congress, but suddenly it's in vogue as the House begins to consider a corporate tax reform bill.
There are many details of this comprehensive tax reform bill that space does not permit us to list, but the overall impact of the
Your organization has been a long-time supporter of this fundamental tax reform bill and your continued support and work towards spreading the Fair Tax message will help move the Fair Tax forward.
Even though House Ways & Means Committee Chair Charles Rangel has not marked up the tax reform bill he introduced last year, Mr.
Gov't OKs tax reform bill for Diet submission, gas rate highlighted
I would like to compliment the Society's Tax Policy Committee for its extensive technical input, the Governmental Affairs Advisory Council and the Executive Board on making the bold and necessary decision to support the tax reform bill.
The AARP representative drew an analogy to the tax reform bill of 1986.