In 1986 President Ronald Reagan signed The Tax Reform Act of 1986 which made many changes to how income was taxed, either eliminating or altering deductions that could previously be taken; changed tax rates for individuals; and, eliminating many calculations that were based on marriage and oscillating income.
Two big changes the Act made are creating only two income tax brackets, of 15 percent and 28 percent, rather than have several different brackets and increased the standard deduction that individuals could take. This Act affected both businesses and individuals, and many of the changes that were made in 1986 are still in place today.
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