Final answer:
The Internal Revenue Code of 1986 does indeed contain the current version of the tax law, as established by the Tax Reform Act of 1986, which simplified the tax system and modified tax rates. The correct option is 1. true
Step-by-step explanation:
The statement that the Internal Revenue Code of 1986 contains the current version of the tax law is true. The Tax Reform Act of 1986 was a sweeping tax reform law that simplified the tax code.
It lowered the top tax rates wealthy individuals paid from 50 percent to 28 percent and raised the minimum tax rate to 15 percent. In doing so, it removed some tax shelters and loopholes previously used to hide income or reduce one's tax burden illegally.
The reform ushered in significant changes, representing the most sweeping changes to the tax code since the Sixteenth Amendment, which established the modern system of federal income tax.
Due to its historical significance, the Tax Reform Act of 1986 highlights how politics can influence tax laws and reflects ongoing debates about tax code simplification and efficiency.
These reforms aimed at creating a fairer, more streamlined tax system and demonstrated how tax policies are shaped by the socio-economic goals of administrations and may change with the political climate. The correct option is 1. true