What is the Tax Reform Act of 1993?
Also called the Revenue Reconciliation Act of 1993, the Tax Reform Act of 1993 was a major revision to the United States tax system.
How Does the Tax Reform Act of 1993 Work?
The Tax Reform Act of 1993 had several components that received a lot of attention. The Tax Reform Act of 1993:
• Raised taxes on married couples making over $250,000
• Raised taxes on Social Security benefits
• Raised taxes on Medicare benefits
• Created higher tax brackets (36% and 39.6%)
• Raised the corporate tax rate
• Lengthened the time over which companies could amortize goodwill
• Eliminated the tax deduction for congressional lobbying expenses
Why Does the Tax Reform Act of 1993 Matter?
The primary objective of the Tax Reform Act of 1993 was to reduce the federal budget deficit.