The major objective of the 1986 tax reform was to: (i) enhance efficiency by lowering marginal tax rates; (ii) enhance equity by closing "loopholes."
A)i and ii
B)i but not ii
C)ii but not i
D)neither i nor ii

Question

The major objective of the 1986 tax reform was to: (i) enhance efficiency by lowering marginal tax rates; (ii) enhance equity by closing "loopholes."
A)i and ii 
B)i but not ii 
C)ii but not i 
D)neither i nor ii

Quizplus · Accepted Answer

The 1986 tax reform aimed to achieve both goals - enhancing efficiency by lowering marginal tax rates and enhancing equity by closing "loopholes". It lowered the top marginal tax rate from 50% to 28% and eliminated or restricted many tax deductions and exemptions. This created a more efficient tax system while making it more fair and equitable for all taxpayers.

The Major Objective of the 1986 Tax Reform Was To