Reagan tax cuts

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The phrase Reagan tax cuts refers to changes to the United States federal tax code passed during the presidency of Ronald Reagan. There were two major tax cuts: the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986. The first tax cut (Economic Recovery Tax Act of 1981) among other things, cut the highest personal income tax rate from 70% to 50% and the lowest from 14% to 11% and decreased the highest capital gains tax rate from 28% to 20%. The second tax cut (Tax Reform Act of 1986) among other things, cut the highest personal income tax rate from 50% to 38.5% but decreasing to 28% in the following years and increased the highest capital gains tax rate from 20% to 28%. It was designed as a revenue neutral bill, and reduced government tax revenues by less than $1 billion over four years. At the time, people were not substantially informed about the tax cuts, as an ABC News Poll in September 1986 showed that 63% of Americans did not know enough about the Tax Reform Act of...

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