Question

This piece of legislation reduced the tax rate on the wealthiest Americans to 28 percent and was a sharp retreat from the idea that the wealthy should pay a higher percentage of their income in taxes than other citizens.
Tax Reform Act

Answer 1

The correct response is Tax Reform Act .The Tax Reform Act of 1986 increased the bottom tax rate from 11% to 15% while reducing the maximum tax rate for regular income from 50% to 28%.

The United States Congress passed the Tax Reform Act of 1986 to streamline the tax code. The enactment of the Act boosted the tax rate on long-term capital gains while lowering the maximum rate on regular income to promote equity and economic progress. It removed millions from the tax registers, decreased the number of tax brackets, and reduced the value of many tax deductions. The highest tax rate was reduced from 50% to 28% and the bottom tax rate was increased from 11% to 15% as a result of the Tax Reform Act of 1986, sometimes known as the second of two Reagan tax cuts. Overall, the 1986 law had little of an effect on long-term GDP because it reduced the marginal tax rate for labour while raising taxes on capital.

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