Archive for Saturday, December 31, 2011

25 years ago: Federal tax overhaul in store for 1987

December 31, 2011


From the Lawrence Daily Journal-World for Dec. 31, 1986:

A new federal tax law set to go into effect on Jan. 1 was expected to boost exemptions while reducing or eliminating some favorite deductions. In the most thorough overhaul of the federal income tax in at least 33 years, the old system of 14 brackets for couples and 15 for single persons was to be cut to five for 1987 and three in 1988 and later years, when three-quarters of all workers were to pay a flat rate of 15 percent. Deductions for two-earner couples, sales tax, and consumer interest were on their way out. The number of people itemizing deductions was expected to drop by about 13 million as a result of the changes.


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