The tax reform laws of 1981 and 1986 were significant because they

Question

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The tax reform laws of 1981 and 1986 significantly reduced the progressiveness of the federal income tax. This means that the tax burden was more evenly distributed across taxpayers regardless of their income levels. The laws also lowered tax rates and broadened the tax base, leading to changes in the economy and federal revenue. There is no evidence that these laws lowered the federal funds rate or made budget deficits illegal. Moreover, they did not significantly increase the progressiveness of the federal income tax.

The Tax Reform Laws of 1981 and 1986 Were Significant