Abstract
The Tax Reform of 1986 was passed by the U.S. Congress on October 1986. The Act was meant to broaden the tax base, eliminate existing tax shelters and simplify the existing income tax code. It is widely referred to as the second of the “Reagan tax cuts” (United States, 2011). The bill in the congress was supported by Democrats, in the House of Representatives by Richard Gephardt and in the Senate by Bill Bradley. The Act resulted in the reducing of the individual tax rates of the Americans thereby increasing neutrality in the tax system. The Act also ...
