Perhaps this would explain it?
http://www.taxpolicycenter.org/publicati ons/url.cfm?ID=1000588
“For example, from 1982 to 1986, 60 percent of long-term capital gains were excluded from tax.”
If you switch from reporting 40% to reporting 100%, then the reported income would jump dramatically. No?
Of course there were a few other changes to the tax law in 1986. I’ve really never dealt with the federal income tax in its prior incarnations. You have. So tell me, what else changed? Any restrictions on tax shelters put into place?
