Tax Reform Act of 1986

§ LEGISLATIONtaxhousing· 1986

SignedOctober 22, 1986PresidentRonald Reagan (R)Congress99th · House: D · Senate: R

What It Did

Slashed the top individual income tax rate from 50% to 28% and reduced corporate rates from 46% to 34%, while broadening the tax base by eliminating many deductions and loopholes. Eliminated the deduction for consumer interest (except mortgages) and passive loss shelters, significantly impacting real estate investment.

The Vote

House · 292–136 (conference report)

176 YEA · 74 NAY

116 YEA · 62 NAY

Senate · 74–23 (conference report)

33 YEA · 14 NAY

41 YEA · 9 NAY

Key Sponsors

→ Dan Rostenkowski (D-IL) · House

→ Bob Packwood (R-OR) · Senate

→ Revenue Act 1964

→ Obra 1993

→ Tcja 2017

Sources: Congress.gov · VoteView · FRED

In the Years Following

Economic indicators related to this law, showing 5 years before through 10 years after.

Gini Index (Inequality)

Corporate Profits After Tax

Real Median Household Income

House Price Index

Homeownership Rate

Many factors influence economic outcomes. This chart shows trends in the years surrounding this legislation — not necessarily caused by it.