Tax Reform Act of 1986

The Tax Reform Act of 1986 was a significant overhaul of the U.S. tax system aimed at simplifying the tax code and making it fairer. It reduced the number of tax brackets and lowered tax rates for individuals and corporations. The act eliminated many loopholes and deductions, broadening the tax base. Its goal was to encourage economic growth by making the tax system less complicated and more equitable. Overall, it aimed to reduce the tax burden on most Americans while ensuring that wealthy individuals and businesses contributed their fair share.