Table of Contents
What was the income tax rate in 1985?
14.4 percent
For 1985 the average tax rate was steady at 14.4 percent of AGI, although this was slightly higher than the average rate for 1984 [3].
What were the tax brackets in 1986?
Understanding the Tax Reform Act of 1986 The Tax Reform Act of 1986 lowered the top tax rate for ordinary income from 50% to 28% and raised the bottom tax rate from 11% to 15%. This was the first time in U.S. income tax history that the top tax rate was lowered and the bottom rate was increased at the same time.
What were tax rates in the 1980s?
For 1980, the rate increased from 9.9 percent to 11.8 percent; for 1981, the rate went from 10.3 percent to 11.9 percent [1]. There are substantial differences between effective tax rates and tax bracket rates.
What was the income tax rate in 1984?
Taxpayers who filed joint returns for 1984 had a tax rate of 0 percent for the first $3,400 of taxable income, a rate of 11 percent applied to the next $2,100, a rate of 12 percent applied to the next $2,100, and so forth.
What was the tax for 1988?
13.81 percent
The average tax rate (total income tax divided by adjusted gross income reported on returns showing a tax) was 13.71 percent for 1989 and 13.81 percent for 1988, compared to 13.67 percent for 1987.
What did the 1986 tax reform do?
The Tax Reform Act of 1986 was the top domestic priority of President Reagan’s second term. The act lowered federal income tax rates, decreasing the number of tax brackets and reducing the top tax rate from 50 percent to 28 percent.
What was the highest tax bracket in 1980?
The 1980s. The Economic Recovery Tax Act of 1981 slashed the highest rate from 70 to 50 percent, and indexed the brackets for inflation. Then, the Tax Reform Act of 1986, claiming that it was a two-tiered flat tax, expanded the tax base and dropped the top rate to 28 percent for tax years beginning in 1988.
What was the federal tax rate in 1983?
Taxpayers who filed joint returns for 1983 had a tax rate of zero percent applied to the first $3,400 of taxable income [7,81, a rate of 11 percent applied to the next $2,100, a rate of 13 percent applied to the next $2,100, and so forth.
What was the top tax rate in 1989?
As already stated, the 1988 and 1989 rates for each filing status ranged from 15 to 28 percent; for 1987, they ranged from I I to 38.5 percent (with a 28 percent maximum rate on net long-term capital gains).
What was the tax rate in 1990?
Using this consis- tent definition of income, the average tax rates were 13.56 percent for 1985; 13.59 percent for 1986; 13.49 for 1987; 13.71 percent for 1988; 13.58 percent for 1989; and 13.41 percent for 1990.
What happened to the income of middle class families during the 1980s?
The result: an extraordinary 20 percent shrinkage in the proportion of middle-income Americans during the 1980s, according to a new analysis of two decades of data that track the changing fortunes of American families.