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What Do You Know About Tax Brackets?

Public Domain

A hallmark of the major tax legislation introduced in the House of Representatives on Nov. 2 is shrinking the number of tax brackets from seven to four. The last time Congress enacted major tax reform was more than 30 years ago. That's Ronald Reagan signing the Tax Reform Act of 1986 into law—legislation that called for slashing the number of tax brackets from 16 to just two. Boy, now that’s simplification! But what do you really know about how tax brackets work?