An Act to reform the internal revenue laws of the United States.
Acronyms (colloquial)
TRA
Nicknames
Tax Reform Act of 1985
Enacted by
the 99th United States Congress
Effective
October 22, 1986
Citations
Public law
99-514
Statutes at Large
100 Stat. 2085
Codification
Titles amended
26 U.S.C.: Internal Revenue Code
U.S.C. sections amended
26 U.S.C. § 1 et seq.
Legislative history
Introduced in the House as H.R. 3838 by Dan Rostenkowski (D–IL) on December 3, 1985
Committee consideration by House Ways and Means, Senate Finance
Passed the House on December 17, 1985 (passed voice vote)
Passed the Senate on June 24, 1986 (97-3)
Reported by the joint conference committee on September 18, 1986; agreed to by the House on September 25, 1986 (292-136) and by the Senate on September 27, 1986 (74-23)
Signed into law by President Ronald Reagan on October 22, 1986
The Tax Reform Act of 1986 (TRA) was passed by the 99th United States Congress and signed into law by President Ronald Reagan on October 22, 1986.
The Tax Reform Act of 1986 was the top domestic priority of President Reagan's second term. The act lowered federal income tax rates, decreasing the number of tax brackets and reducing the top tax rate from 50 percent to 28 percent. The act also expanded the earned income tax credit, the standard deduction, and the personal exemption, removing approximately six million lower-income Americans from the tax base. Offsetting these cuts, the act increased the alternative minimum tax and eliminated many tax deductions, including deductions for rental housing, individual retirement accounts, and depreciation.
Although the tax reform was projected to be revenue-neutral, it was popularly referred to as the second round of Reagan tax cuts (following the Economic Recovery Tax Act of 1981). The bill passed with majority support in both the House of Representatives and the Senate, receiving the votes of majorities among both congressional Republicans and Democrats, including Democratic Speaker of the House Tip O'Neill.
and 26 Related for: Tax Reform Act of 1986 information
were two major tax cuts: The Economic Recovery TaxActof 1981 and the TaxReformActof1986. The tax cuts popularized the now infamous phrase "trickle-down...
elimination of the 10% investment tax credit was then included in both the House and Senate versions of the bills that became the TaxReformActof1986, which...
recovering independent oftaxreform. A reform package may include increases and decreases in tax rates; the TaxReformActof1986 increased the top capital...
of the PFIC or (ii) deferral of such income subject to a deemed tax and interest regime. The provision was enacted as part of the TaxReformActof 1986...
created in 1986 by Americans for TaxReform as part of the effort to protect the lower marginal tax rates of Reagan's TaxReformActof1986. It has grown...
Income Tax System of the U.S. Virgin Islands before and after the TaxReformActof1986". Pp. 170-205 of Volume 6, Issue 1 of Berkeley Journal of International...
is generally not used for external reporting purposes. Under the TaxReformActof1986, income statements must use absorption costing to comply with GAAP...
The Tax Equity and Fiscal Responsibility Actof 1982 (Pub. L.Tooltip Public Law (United States) 97–248), also known as TEFRA, is a United States federal...
gains tax rate and repealing the exclusion of capital gains. The TaxReformActof1986 repealed the exclusion from income that provided for tax-exemption...
Revenue Actof 1988 (TAMRA) (Pub. L.Tooltip Public Law (United States) 100–647) made corrections to the TaxReformActof1986 and the Revenue Actof 1987...
into law by U.S. President Ronald Reagan on November 6, 1986. The Immigration Reform and Control Act altered U.S. immigration law by making it illegal to...
the completed-contract method and the percentage-of-completion methods. Since the TaxReformActof1986, the cash method can no longer be used for C corporations...
an excise tax. Although this statute became law on April 7, 1986, its official name is the Consolidated Omnibus Budget Reconciliation Actof 1985 (Pub...
Alternative Minimum Tax after the TaxReformActof1986. All things equal, yields on private activity bonds are higher due to this tax treatment. Maguire, Steven;...
definitional changes and extensive reorganization, occurred with the TaxReformActof1986. A further criticism is that the AMT does not even affect its intended...
the TaxReformActof1986, simplifying the tax code by reducing rates and removing several tax breaks, and the Immigration Reform and Control Actof 1986...