The Tax Reform Act of 1986 (h.r. 3838)

Under the Tax Reform Act of 1986 (H.R. 3838) there would be only two statutory marginal tax rates for individuals, 15 and 28 percent. In addition to reducing statutory marginal tax rates, H.R. 3838 would phase out certain tax provisions over various income ranges. These phaseout provisions would produce an effective marginal tax rate schedule considerably different from the statutory schedule. This paper describes the phaseout provisions contained in H.R. 3838 and analyzes their effects on marginal tax rates.,Abstract -- Phaseout of the Earned Income Tax Credit (EITC) -- Phaseout of Deductible IRA Contributions -- Phaseout of the 15 Percent Tax Rate Bracket -- Phaseout of Losses from Passive Activities -- Phaseout of the Personal Exemption -- Summary.,CRS 86-912 E,"September 26, 1986.",SuDoc# LC 14. 18/3