The Tax Reform Act of 1986 was enacted on 22 Oct. 1986. It was the first time in history that the highest tax rate was reduced (from 50% to 28%) while the lowest rate was increased (from 11% to 15%).
Before the law took place the top 1% of America’s income earners received 8.4% of the nations pay, by 1989 they accounted for 13.5% and by 2012, nearly 25%.
The Tax Reform Act not only saw an increase in the income inequality, combined with increases in government spending, it also resulted in significant increase in the national debt. In fact, the loss of revenue and increased government spending during the 1980s tripled the Federal Debt.