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.
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Failure on this front will be a disaster for every political party, especially the Pakistan Muslim League-Nawaz (PML-N) that has introduced the tax reform bill.
Harris Corporation announced that, as a result of the passage of the tax reform bill, the company anticipates making an additional contribution to its employee pension fund, increasing its investment in research and development, and providing a one-time stock grant to all of its non-executive employees.
Ron Samford, president and CEO of $390-million-asset Metairie Bank, said the recent enactment of President Trumps tax reform bill provided a substantial benefit to the bank, through significantly lower corporate income tax rates.
Unfortunately, the current tax reform bill does little of this.
The company expects its tax rate to be about 27% in 2018 as a result of last month's tax reform bill and said it would make strategic investments, particularly after it completes its $69 billion acquisition of Aetna.
Standard Chartered lowered their 2018 growth forecast to 2.0% , as the tax reform bill (which includes increases in VAT and corporate income tax) is likely to be contractionary.
The move follows the signing of the tax reform bill. As part of the move, PNC will offer employees in the defined benefit pension plan an additional USD1,500 to their existing pension accounts; provide an USD1,000 cash payment to nearly 47,500 employees representing nearly 90 percent of PNC employees, in the first quarter of 2018; increase the minimum wages to USD15.0 an hour by the end of 2018 and provide a USD200m contribution to the PNC Foundation, which supports early childhood education through PNC's Grow Up Great initiative.
The tax reform bill has faced stiff opposition from Democrats, who have suggested that it amounts to little more than a tax cut for wealthy Americans that will balloon the deficit.
Last week, "we came together in a House-Senate Conference Committee -- which I had the honor of leading -- to deliver one unified, transformational tax reform bill for the American people," said House Ways and Means Committee Chairman Kevin Brady, R-Texas.
Summary: Washington DC [USA], Dec 2 (ANI): The Republicans secured a much-needed victory as the United States Senate passed a legislation to overhaul a nearly USD-1.5 trillion tax reform bill.
As the Trump administration and Congress negotiate over the provisions of a major tax reform bill, some accounting and tax issues are up for grabs.
As the House begins debate on its tax reform bill, members will be prohibited from offering any amendments--including changes to the credit union tax exemption.