The Tax Reform Act of 1986 was a significant piece of legislation in the United States aimed at simplifying the tax code and reducing tax rates. It lowered the top individual tax rate from 50% to 28% and eliminated many tax shelters, making the tax system more equitable. The act also broadened the tax base by removing various deductions and credits. Additionally, the act aimed to stimulate economic growth by encouraging investment and increasing compliance. It introduced changes to corporate taxes, lowering the top corporate tax rate from 46% to 34%. Overall, the Tax Reform Act of 1986 sought to create a fairer and more efficient tax system.