Ronald Reagan ran for president on a platform of tax reform. In the fall of 1986, President Reagan signed into law the Tax Reform Act of 1986, one of the most far-reaching reforms of the U.S. tax system. More than ten years later in 1997, President Clinton signed the Taxpayer Relief Act which reduced taxes by $152 and implemented more than 800 changes to the Tax Code rules and regulations, including a $500 per child tax credit, capital gains tax reduction, Roth IRAs and tax incentives for education. Following the passage of these major tax bills, significant tax legislation was also enacted during the presidency of George W. Bush. This blog examining the tax history of the U.S. will examine the legislation enacted during his time in office.

As perhaps would be expected, taxes were not much a part of our nation’s early history. Then the high cost of the War of 1812 brought about a need for revenue at the federal level and the nation’s first sales taxes were implemented. Fifty years later, Abraham Lincoln enacted emergency measures to pay for Civil War. In 1954, the 875-page Internal Revenue Code of 1954 was formulated. It was perhaps the most monumental overhaul of the federal income tax system to date. In 1969, the Tax Reform Act contained major amendments to the 1954 Tax Code.

Reagan-Bush Era

Our nation has existed since 1776. Some wonder whether the income tax has been around for as long. As perhaps would be expected, taxes were not much a part of our nation’s early history. After all, the Boston Tea Party involved a protest over a tariff, the Tea Act of 1773, imposed by the English crown. In the period directly preceding the 19th century, the United States imposed internal taxes on distilled spirits, tobacco, refined sugar, slaves, carriages, corporate bonds, snuff, and property sold at auction.

The 19th Century