The Tax Reform Act of 1986 brought the top individual tax rate down from 50 percent to 28 percent. However, the Act was roughly revenue neutral — that is, it wasn’t intended to raise or lower taxes, but it shifted some of the tax burden from individuals to businesses.

The 1986 law also simplified taxes for individuals by eliminating income averaging and the deductions for consumer interest and state and local sales taxes. However, it added to the complexity of business taxes, especially in the area of international taxation.

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