The Tax Reform Act of 1986

The Tax Reform Act of 1986 was a major overhaul of the U.S. tax code aimed at simplifying tax rates and expanding the tax base. It reduced the number of tax brackets and lowered income tax rates for individuals and corporations. To offset these cuts, it eliminated many tax deductions and loopholes, promoting fairness. The act aimed to encourage investment and growth while making the tax system more efficient. Overall, it sought to make taxes less complicated and more equitable for all taxpayers, balancing revenue generation for the government with economic growth incentives.