Tax Reform Act Of 1993

AAA

DEFINITION of 'Tax Reform Act Of 1993'

Legislation aimed at reducing the federal deficit through a combination of increased taxes and reduced spending. This act was created by the Clinton Administration in 1993 and contained several major provisions for individuals, such as the addition of the 36% tax bracket, an increase in gasoline taxes and an additional tax of 10% on married couples with income above $250,000. It also raised taxation on Social Security benefits and eliminated the tax cap on Medicare.

INVESTOPEDIA EXPLAINS 'Tax Reform Act Of 1993'

This legislation is also known as the Revenue Reconciliation Act of 1993. Individuals were not the only ones affected by this legislation; the corporate tax rate was raised as well, along with a lengthening of the goodwill depreciation period and the elimination of deductibility for congessional lobbying expenses. Many other taxes were raised and deductions reduced or eliminated as well.

RELATED TERMS
  1. Total Tax

    The composite total of all taxes that is owed by a taxpayer for ...
  2. Formal Tax Legislation

    The process by which a proposed tax rule or tax change may become ...
  3. Tax Reform Act Of 1986

    A law passed by the United States Congress to simplify the income ...
  4. Progressive Tax

    A tax that takes a larger percentage from the income of high-income ...
  5. Tax Equity And Fiscal Responsibility ...

    Federal tax legislation passed in 1982 that modified some aspects ...
  6. Economic Justice

    Economic justice is a component of social justice. It's a set ...
Related Articles
  1. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

  2. Bankruptcy Protection For Your Accounts
    Retirement

    Bankruptcy Protection For Your Accounts

  3. Dividend Tax Rates: What Investors Need ...
    Taxes

    Dividend Tax Rates: What Investors Need ...

  4. The Chinese Wall Protects Against Conflicts ...
    Options & Futures

    The Chinese Wall Protects Against Conflicts ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center