Preferential capital gains rates were repealed in 1986 and later restored
Evidence
However, there is one suggestion from progressive scholars that seems an easy and obvious first step: repeal the preferential rate for capital gains. The Tax Reform Act of 1986, heralded by Republican president Ronald Reagan, had as its centerpiece the idea that income from stocks should be taxed exactly as income from wages. Both wages and capital gains were taxed equally under the progressive tax system; there was no preferential rate. — Dorothy A. Brown, The Whiteness of Wealth, 489
Categorization
Category: Causal Relationships
- XREF: This is one of the four named provisions the reader wants — the preferential rate on capital gains, which was briefly equalized by the Tax Reform Act of 1986.
- QUESTION: Need to confirm which 1986-1997 legislation re-established the preferential rate (Taxpayer Relief Act of 1997) to complete the timeline.
Related
- The 1986 act taxed capital gains and wages equally (similarity 0.90)
- The tax code taxes investment income at a lower rate than wage income (similarity 0.78)