Mark49:

Sure, Pat, but that has nothing to do with rate cuts, it has to do with Congress tinkering with the code. I'm sure there were many compromises between Reagan and the Democratic Congress to get flatter tax rates passed.

Because the rate changes were package together with the other changes, it is deceptive to consider the rate changes isolated from the other changes.  The fact is that the tax reform act of 1986 did not help every tax payer of every income.  It certainly did not help me.

Also, those with about $32,000 of income who used the standard deduction had their marginal tax rate increased from 30% to 35% and long-term capital gain rate increased from 12% to 28%.